sheesh...I just realized I was a member with ET 14 years ago...I am getting old. My trades are in place and I might get lucky and go flat this PM...then I can loligag 
es
es
What do you consider a good yearly return? (In percent)
- Thread starter trade5656
- Start date
Impressive. So if you start with a $10K account and avg 4% a day (your mid avg) then in one year you would have $238,609,855.42
Good job!
http://www.miniwebtool.com/exponential-growth-calculator/?n1=10000&n2=0.04&n3=252&n4=
sheesh...I just realized I was a member with ET 14 years ago...I am getting old. My trades are in place and I might get lucky and go flat this PM...then I can loligag
es
Just curious, but have you been lurking here for the last 5 years?
No...just got an itch to come back yesterday. I like the new look of the site.
Back in the days when I managed OPM (doubt the game has changed much since), there were services which tracked (audited) the returns of money managers (MMs). Out of thousands of MMs, 10-yr average compounded returns of 30%/yr were <0.1%. The number of 10-yr returns of 40%/yr could be counted on the fingers of one hand.
With ZIRP these days in a "Fed interventionist" market... returns are much lower. The "Fed put" has reduced volatility hugely but also reduced opportunity for gains. (Hedgefunds... the "superstars" of cutting edge investment... have been dropping like flies. Even the really smart and formerly successful MMs have found outsized returns to be difficult to achieve.)
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That's correct, but IMHO this is mostly due to the minimum contract/trade size. Enter the forex world (true high quality ICN's) and suddenly everything is perfectly scalable to 0.1 or 0.01 of a lot (including commissions).
Of course bigger account allows one to live off the trading at reasonable return rates whereas small account holder will probably press on too hard (and ultimately derail) to make it "worth" his/her time.
just my $0.02 worth
The 50 year part is a little hard for a 58 year old man to verify. But I did place my first trade with Merrill Lynch at the age of 18 years old on my sharebuilder account then a few years later I got into GNMA accounts with Paine Webber. It wasn't until I came to ET nearly a decade ago that I started to shoot for 25% APY after reading some wise posts here. Earlier I involved myself in drawdown theories and opinions, but generally speaking money at risk should make a minimum of 25% APY...I stand by that. Maybe there are some aliases here that know my track record and can attest to my abilities. If not you will just need to accept that 25% APY (after labor and costs) on amount invested with a yearly reset is a necessary benchmark to shoot for. This is not easy and I have never stated it is easy. Trading is the hardest thing I have undertaken in my life.
P.S. I am not here to troll for clients or sell anything as I am not for hire. I simply missed posting with traders and have had some huge financial set backs with capital resets (outside of trading) depleting my trading capital. I have been up and have been down but I shoot for efficiency and to make my numbers. Again I am not looking for capital even at 0%...To traders out there learning how to win...try taking 50% of the profit out of your account monthly, quarterly or whatever and let the other 50% profit ride. Always balance...keep the balance grasshopper
ElectricSavant™
What you say makes perfect sense. There must be a rate of return on the risk capital involved and separately there must be a compensation for the time put in trading. The second part is different for each, basically whatever wage you could earn given your skill set and market conditions at the moment.
The one thing that needs to be omitted though is the time/effort invested into learning how to trade. There is no way this part could be fairly calculated, so if it's not working for someone fairly soon, one really needs to make that call whether he/she should quit trading.
Fair enough. The 25% is an opinion of mine and if there are posters here that do not agree that is just fine. But as punisher explained better than I the thought of that you must calculate fairly and set your benchmark to something. I learned from punishers post that I was far too stubborn and spent way too long to ever repay myself monetarily for my time learning.
(passion and rationalisation sometimes do not calculate)ElectricSavant™
The trading logic (annual 25% profitable) can be transferred to your family(son).
Modern capitalism was almost same after the stock market appearance in Holland about 400 years ago. If there is ONE trading logic with annual 20% or more and it is transferred to son's for 400 years, then everyone except ONE SINGLE PERSON should be broke or asset zero.
That means Buffet and Gates should be broke now.
Find to see 1.2^400, which is bigger than the population on the earth.
Modern capitalism was almost same after the stock market appearance in Holland about 400 years ago. If there is ONE trading logic with annual 20% or more and it is transferred to son's for 400 years, then everyone except ONE SINGLE PERSON should be broke or asset zero.
That means Buffet and Gates should be broke now.
Find to see 1.2^400, which is bigger than the population on the earth.
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