So, what does a good trader make per month?

Traders encompass a wide range.

There are outright gamblers. The true believers who expect to make in excess of 30% annualized every year. These guys usually come from more speculative side of the business. Perhaps punting forex or as a pro who used to have an edge on the floor and access to capital/resources.

However, there is also a very grounded group with a traditional investing background who have taken up trading to generate excess returns that cant be acquired from a traditional portfolio.

Outlandish return expectations, without pro affiliation, will indicate that you are more gambling than trying to "trade for a living".
 
Quote from streetgangs:

a institutional trader at a hedge fund with 50 million in assets or book of business can make over 7 figures
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Bah, 7 figures (e.g. $1.5 * 10^6) is a take-home for a decent derivatives trader at a bank or an ok-ish PM at a large fund. 50 million in assets is actually a very small fund these days

Quote from Zr1Trader:
That is another reason I believe a 25% annual return in any business deserves respect which it didn't seem like you thought 25% was that big of a deal in an earlier post.
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Plenty of small businesses do way better RoC-wise, because of the constrained capacity. Your local Burger King shop is probably returning 50-60% at least.
 
C'mon Sle, you must be kidding us. I can't tell.

But 50 -60% on Burger King? Why would we be wasting our time here. Buffet would just buy Burger King.

There is a security market line is the middle of our solar system. Taking leverage out, returns of every asset class will gravitate towards that line.
 
we go from discussing whether or not a 150k account can return 20%, to tripling a 10k futures account with your net worth 1mm, all the way up to a 50mm hedgefund accounts to scalping burgers at burger kings.


Just all over the map today!
 
Quote from xandman:

C'mon Sle, you must be kidding us. I can't tell.

But 50 -60% on Burger King? Why would we be wasting our time here. Buffet would just buy Burger King.
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Burger King as a company does not do anything even close to these RoCs. However, a single franchise owner who is managing the place himself, can easily do that or better. There was a study that NYC street hot dog vendors achieve 100%+ returns on investment. The problem is lack of scalability, obvioulsy - the results are there becase of the "reverse economy of scale".
 
people here are supposed to be prop traders, NOT grandpas measuring their portfolio annual yield. whether they show up at a london office, or sitting in ur basement in Dover. show up with a 10k deposit and scalp 200k shares a day and leave with 500 to 2k and not have a clue of what your annual return is...
 
Quote from sle:

Burger King as a company does not do anything even close to these RoCs. However, a single franchise owner who is managing the place himself, can easily do that or better. There was a study that NYC street hot dog vendors achieve 100%+ returns on investment. The problem is lack of scalability, obvioulsy - the results are there becase of the "reverse economy of scale".
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But the salary is subtracted from the ROI calculation. His time is valuable.
 
Quote from billyjoerob:

But the salary is subtracted from the ROI calculation. His time is valuable.
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True and not. To make a proper economic argument, you should subtract a expected salary that the enterpreneur can command via regular employment. For a street-vendor or a BK franchise owner, I'd imagine, salary expectations via regular employment are not too high.
 
I will definitely look into that hotdog business. I have a lot of friends in Manhattan and have access to certain culinary delights that will draw them like catnip.

I acknowledge that reverse economy of scale you presented. There is definitely a structural issue in the market which prevents a roll up and causes outsized profits. Like any market, the less benign the structural issues are, the more chance for outsized profits. I hope I don't need mob contacts.

So far, growing Chicago Kush in the suburbs is the best alpha. And, people love you for it.
 
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