How much should a "good" trader earn?
- Thread starter Cutten
- Start date
Wouldn't annualized return on capital be a more relevant metric given the wide disparity in people's trading capital?
It depends on your initial trading capital.
If one started with $10 million, $50k would seem lame. However, if one started with $25k, $50k would be pretty good.
Questions like that are too subjective. Honestly, the more the better. I would say that if you are making as much trading as you were with your previous job, you are doing decent, since you can only go up from there.
If one started with $10 million, $50k would seem lame. However, if one started with $25k, $50k would be pretty good.
Questions like that are too subjective. Honestly, the more the better. I would say that if you are making as much trading as you were with your previous job, you are doing decent, since you can only go up from there.
I just wanted to avoid the inevitable "100% return...on a $5k account" problems. But obviously for multi-million account traders, a six figure % return could be fairly mediocre in terms of ROI. Since the former is more common, I biased the poll that way.
You could start a "what is a good % return" poll to compare
You could start a "what is a good % return" poll to compare
I want to throw this out to see how realistic this sounds.
$50,000 account
Assume living expense are taken out of a separate account.
Would you expect to be able to generate $75,000 of income before taxes each year?
$50,000 account
Assume living expense are taken out of a separate account.
Would you expect to be able to generate $75,000 of income before taxes each year?
You have to compare your annual trading profit with
an average you can do in most general type of business,
and not compare with top performing traders.
An average business makes a return of 10-15% after
tax. If you can return 100% on your capital, then you
are succussfull.