With a horseshoe up your butt you may pull off a couple months in a row. Maybe even a whole year. 5% a month Consistently year over year, you're dreaming ...
Is it possible to make 5% a month in stocks and ETFs ?
- Thread starter etradeqeko
- Start date
5% a month = 60% a year.
So you are talking RenTec Medallion level of performance.
Even if you had a really good trading system, the range of annual returns is going to be circa 0% to 120% (or even wider).
You will also have drawdowns, 20 to 30%.
The exception is if you have a high frequency trading system that bets small but bets often. Then you can have a tighter range with smaller drawdowns.
But a lower frequency day trading system, that aims for 60% a year with max 30% drawdowns and an annual stdev of 30% is not unrealistic.
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Apparently you do not aim for this. What do you aim for?
Do you understand English? I've surpassed 5% a month long ago. It has nothing to do with aim but with consistency.
So what is your straight answer to the posted 5% question? I do not agree about your vision of aim and consistently, nor do I think it is polite to enter this tread with getting at me.
Like i said you don't understand english.
Is the size a factor ? There have been a few replies along similar lines as your message above. Hedge funds probably have millions staked in the market. Where as individual may have a 10s of thousand or a maybe 100k or so. Would that make possible higher return rates ? Also, not looking for compounding - just a standard principle as investment amount - say $50k in every trade rather than adding any gains to the initial 50k to the next trade.
For me it is easier to make 1 million profit with a 1 million account, then to make 10 million with a 200 million account.
So in my account return wise I would beat the hedgefunds every year.
But in total amount of profit I can never beat them. As I would make only 1 million while they make 10 million.
So the first part of your statement is correct as I beat them in %.
And the second part is wrong as I make money. You will have a hard time taking my money.
In your statement you forget size and that is essential in trading. Renaissance has problems with returns because of size and even reduced the invested amounts because of that problem. Buffett also has problems with size.
PS: why should I care about beating or not beating anybody? If I can make consistently over 1 million net a year I probably beat 99% of the traders. I would be in the top 0.01% top of the entire world population.
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