What do you consider a good yearly return? (In percent)
- Thread starter trade5656
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yes, it's better than the long-term return of the S&P 500.
Exactly. Also I would make a difference between what you are trading and trading styles too.
So we should probably divide account sizes into 3 groups, the bigger the account the smaller the expected and needed return. For stocks also the expected return is smaller than for options or futures. And styles, on average a daytrader should make more than a swing or one who holds it for days, weeks, otherwise what is the point in wasting time in front of the screen?
Furthermore a good return doesn't equal making a comfortable living. If trader makes 30% on a 20K futures account that is very nice and could buy a nice Hawaiian vacation for 4, but doesn't pay the monthly bills....
TL;DR: The OP's question was too generic....
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I do not consider SPX as a benchmark. I trade for a living and need much more than that
Hence, I trade with more than $10k and still look for profits above the 100%.Looking is good, finding is better. Have you found your 100+ % strategy?
I do not consider SPX as a benchmark. I trade for a living and need much more than that
OK - but that is a different question to the one that trade5656 posed in the first post. Your bills and lifestyle requirements are a separate consideration to the notion of a "decent yearly profit".
Taken to an extreme, if one's lifestyle requirements were relevant, then a return of less than $1 million a year may be poor for a person who earns that much annually.
If you're profitable you're in the top 1% of people trying to trade, consistent low single digits per month is the core benchmark, once you go above this you are entering a world a few may have sporadically seen but only a handful can maintain.
So in the teens percent per year and you're up around the same levels of knowledge as a millionaire, for your low risk criteria single digit percentages per year.
So in the teens percent per year and you're up around the same levels of knowledge as a millionaire, for your low risk criteria single digit percentages per year.
Return without consideration of risk and leverage is meaningless.
I would say if you can do three times your biggest drawdown, you had a good year.
I would say if you can do three times your biggest drawdown, you had a good year.
Agree with you, but have to ask what is the point of trading by ending a year with perhaps 10% profit? You are better of putting money in a hedge fund. I trade according to my plan, if I don't reach my plan I consider it a failure no matter if I made profit.
Let me put it this way, a 10% per month is decent profit, no compounding means 120% a year even with a $1mil. starting capital.
Cheers
Yes I am consistently profitable averaging 3-5% a day on my balance which is no 100 buck account.
To answer the topic question: I'd say if you can't at least double the starting capital it ain't good.
Cheers