for small account: 50K, what is the reasonable return?

P

pocoyo2014

50% or 200% ?
I know a guy grow his account from 20K to 20million in 10 years.

what is the reasonable and sustainable return for small account?
 
Use the full offer of the market as a standard and refer to your personal effectiveness and efficiency to drawn the conclusion you desire.

50% or 200% seem low fo an annualized ROI.

Using one contract (ES e-mini) and making the least net per day per contract a day (1 tick per day per contract for 240 days a year) means you will double capital in 96 days then add another contract again in 48 days then add another contract in 32 days and add another contract in 24 days and add another contract in 19 days and, finally, add another contract before the end of the year. (this is over 600% of the intial fully leaveraged capital)
 
Reasonable return for doing what? Daytrading or passive investing? If its daytrading (i.e its your day job) you should be looking at a 6 figure annual returns from it, else its simply not worth the time, you'd be better off with a proper day job.

For passive investing, 6-8% annual returns on your capital is good and a pretty reasonable target.
 
wait...
this is from the OLDBOY movie..

Woo-jin Lee: Your gravest mistake wasn't failing to find the answer.
You can't find the right answer if you ask the wrong questions.

so my Question to the OP... forget what the market will give you..
what is It you expect?
 
pocoyo2014 said:
50% or 200% ?
I know a guy grow his account from 20K to 20million in 10 years.

what is the reasonable and sustainable return for small account?
More...

Enter the following formula in Excel: =RATE(120,0,20000*-1,20000000,0)

and you'll get about 5.93% compounded monthly, so I guess it's possible. "Is it sustainable?" Not likely

It also depends on what you're trading and whether you're concentrated or diversified. If you're in stocks, you could expect the returns of the S&P500, anything exceeding the SPX performance is Alpha in your portfolio, and you'll need whole lot of Alpha to match that guy's performance.
 
10% a month ain't impossible for small cap swing trading on reg T, though I've found it's much easier when I can't watch the trade console all day and have to buy on limits placed the night before.......... :eek:
 
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