Day trader monthly performance and returns

[Snuskpelle]

Sure, 300 to 500% return per month is the minimum for non-retards.

Jokes aside, the distinction between account returns versus returns on total net worth/capital is important.

 

[tonyf]

I mean, either he already knows he can come close to that figure or it's a pipe dream. For the sake of a productive discussion most replies (including mine) assume the former. The reality in aggregate for day traders is certainly as bleak as those stats hint, but keep in mind the statistics for the group "all day traders" are probably heavily skewed by people who start day trading without knowing what they're doing, until they quit a few days/months/years later after depleting their accounts and credit [or before if a bit smarter].

What were your own returns for the last 12 months if you don't mind me asking?

 

[easymon1]

do I set as a target? 18% or 55% per month?

What timeframe charts do you like to trade?

 

[DaveV]

I have researched the performance of day trader and most people say that the best traders earn around 18% of their capital per month ...

Do you think you can grow $10,000 to $5 million in 3 years? Well that is what a compounded 18% per month return yields. If day traders could really get these kinds of returns, how many do you think would still be trading after 3 years.

 

[Snuskpelle]

What were your own returns for the last 12 months if you don't mind me asking?

I don't do day trading anymore (which I never succeeded at). If you're fine with fast head rounding for weighted average of three different accounts over last 13 months: 180% up with 30% DD (and I was out at the large DD until November...). Yeah, not worth it because I could have parked my money in Nasdaq 100 at 2x leverage post COVID drop and done better.

I can definitely see that last year has been day trader heaven though with all the dumb money entering the market for the first time, for people playing equity and crypto spaces. Still, the people that made the most money with least effort were those that got ballsy positional trades correct (Tesla, etc.).

 

[Bad_Badness]

People also put "returns" ahead of other goals. Day traders need consistency. That should be your main goal. Day trading in about large sets of trades.

Also note all systems have a "natural" or "sweet spot" for returns. Some system will give you 15%, but when you push them to 30% they can slide back to 5%. And not all system scale well. Let the system determine the return rate after it show consistency for 500 trades or more.

Putting return rate as the primary goal is putting the "cart before the horse". You should try for a consistent system first. If you can get consistent at 5%, then you are past the first major hurdle. After that you can optimize your system and get to 10%, 15% and then beyond, while maintaining consistency.

Lastly, choosing a system is a personal thing, based on personality type, risk tolerance, and many other things. So a system that give your XX% for one person might be too stressful for another. For instance how many trades are put on in a day and what are the swings? 10, 40, 100, 200? What is the average trade time. Each person has different tempo and attention span.

 

[tayte]

go for 100% a month, 200x leverage would be best.

 

[Snuskpelle]

go for 100% a month, 200x leverage would be best.

I've heard of these reliable CFD platforms offering 1000x. Just requires 0.1% move in underlying to meet your monthly target.

 

[Millionaire]

Hello,
I have researched the performance of day trader and most people say that the best traders earn around 18% of their capital per month, but on youtube there are day traders who advertise their earnings that exceed 50% per month (by proof).
For me as an intermediate trader how much percentage do I set as a target? 18% or 55% per month?
Please share with me your experiences in terms of performance.
Thanks everyone.

1)If you risk 0.5% per trade you need to net 100R to make 50%
2)If you risk 2% per trade you need to net 25R to make 50%.

3)If you risk 5% per trade you only need to net 10R a month to make 50%.
4)If you risk 10% per trade you only need to net 5R a month to make 50%.

Assuming you start with a small account like $5K or $10K.
The third and fourth options are a lot easier way to achieve 50% per month than the first two.

However you will have losing trades and streaks as well, so your risk of ruin is high, but assuming it is only a small account to start with you might not mind so much. Get that small 10K to 100K, by taking bigger risks, then cut back risk to something more sensible.

 

[easymon1]

1)If you risk 0.5% per trade you need to net 100R to make 50%
2)If you risk 2% per trade you need to net 25R to make 50%.

3)If you risk 5% per trade you only need to net 10R a month to make 50%.
4)If you risk 10% per trade you only need to net 5R a month to make 50%.

Assuming you start with a small account like $5K or $10K.
The third and fourth options are a lot easier way to achieve 50% per month than the first two.

However you will have losing trades and streaks as well, so your risk of ruin is high, but assuming it is only a small account to start with you might not mind so much. Get that small 10K to 100K, by taking bigger risks, then cut back risk to something more sensible.

% of What per trade? Thanks
Are you using stop gap to calculate percent of account to position size to control risk on a particular trade?