Personal note

[falcon]

Mark,

I'm new to options and feeling confused over returns being quoted and would like to get a better understanding of the kinds of returns that can be expected. I have heard and read many varied responses and how credit spreads or iron condors can return anywhere from 5 to 10% each month (50% to 100% each year).

Then some experienced traders say 3% is very good while others claim much more. How are figures calculated? Is it on risk capital, entire portfolio, maybe on something else ?

If someone trades options for a living I figured one would have to be making enough to replace their wage

Any responses to clarify would be greatly appreciated.

 

[gkishot]

Quote from falcon:

Mark,

I'm new to options and feeling confused over returns being quoted and would like to get a better understanding of the kinds of returns that can be expected. I have heard and read many varied responses and how credit spreads or iron condors can return anywhere from 5 to 10% each month (50% to 100% each year).

Then some experienced traders say 3% is very good while others claim much more. How are figures calculated? Is it on risk capital, entire portfolio, maybe on something else ?

If someone trades options for a living I figured one would have to be making enough to replace their wage

Any responses to clarify would be greatly appreciated.

It should be on your account balance.

 

[dmo]

Quote from falcon:

Mark,

I'm new to options and feeling confused over returns being quoted and would like to get a better understanding of the kinds of returns that can be expected. I have heard and read many varied responses and how credit spreads or iron condors can return anywhere from 5 to 10% each month (50% to 100% each year).

Then some experienced traders say 3% is very good while others claim much more. How are figures calculated? Is it on risk capital, entire portfolio, maybe on something else ?

If someone trades options for a living I figured one would have to be making enough to replace their wage

Any responses to clarify would be greatly appreciated.

Bernie Madoff claimed relatively modest profits of 1% monthly. But in reality he couldn't produce even that - despite having enough money to hire the world's smartest people.

Do you really think 5-10% monthly is remotely realistic?

 

[falcon]

'Bernie Madoff claimed relatively modest profits of 1% monthly. But in reality he couldn't produce even that - despite having enough money to hire the world's smartest people.

Do you really think 5-10% monthly is remotely realistic?'

No I don't. But then again I would'nt know, that is why I'm asking. I'm starting to get the distinct impression that such a simple question does'nt warrant a straight forward answer. Maybe I'm not meant to really know and the real answer is that no one trades for a living and it's all blogs, books, seminars etc where the money is made.

I would love to be proven wrong.

 

[spindr0]

Quote from falcon:

I'm new to options and feeling confused over returns being quoted and would like to get a better understanding of the kinds of returns that can be expected.

You can't "expect" anything. If I can do 30%, will you be able to do that much? If I lose 10%, does that mean that you will? There's no way to know how good (or bad) you will be until you do it.

 

[spindr0]

Quote from dmo:

Bernie Madoff claimed relatively modest profits of 1% monthly. But in reality he couldn't produce even that - despite having enough money to hire the world's smartest people.

Now if Madoff had taken the advanced Ponzi scheme web seminar, he might have painted his tape better

 

[falcon]

'You can't "expect" anything. If I can do 30%, will you be able to do that much? If I lose 10%, does that mean that you will? There's no way to know how good (or bad) you will be until you do it.'

Ofcourse not. I know what your saying, am just trying to sift through alot of the BS. Will figure out where Im positioned on the totem pole in due time, till then guess i'll have to just wait it out.

 

[spindr0]

Quote from falcon:

Ofcourse not. I know what your saying, am just trying to sift through alot of the BS. Will figure out where Im positioned on the totem pole in due time, till then guess i'll have to just wait it out.

If I traded for 1/10 of one per cent of what Elite Traders make, I'd bail out the US government

Seriously, I'd suggest that you learn not only about the subject at hand but about money management as well. Trade small until you find out what you can achieve and then expand your size gradually. AFAIK, profits will take care of themselves. It's the losses you have to worry about

Good luck.

 

[nutmeg]

Quote from spindr0:

Now if Madoff had taken the advanced Ponzi scheme web seminar, he might have painted his tape better

Speaking of Bernie, the results are in: Only one half of his "clients" lost money. Do not pass go, do not collect $200, go directly to jail. On the flip side, we all probably could name a few funds where every "investor" lost every last dime. There weren't any survivors and no one went to jail.

 

[dagnyt]

Quote from dmo:

Bernie Madoff claimed relatively modest profits of 1% monthly. But in reality he couldn't produce even that - despite having enough money to hire the world's smartest people.

Do you really think 5-10% monthly is remotely realistic?

Remotely realistic - NO.

But is it possible? Yes, there's a very small chance.