What is the monthly expected return trading stocks?

birzos said:
On mid timeframe charts, like 60mn, 1-2% per month assuming you are in the top 1% who are the only ones making any profits, with account sizes in the high 5figures and low 6figures.

Unless you have something seriously special, remembering the top 1% have the same knowledge close to or above a millionaire, with your account size the expectancy is negative.

Simply because your capital does not produce a positive return on effort without decades of experience behind you. The average is skewed to the top, that's synthetic asset classes at work.

<top1% loss
=top1% break even
top1% 1-2% per month
top0.1% 3-5% per month
top0.01% 7-10% per month
top0.001% 15-20% per month

The top 0.001% who generate those returns consistently over 15-20years starting with $1,000 capital will become a billionaire, there are currently 2,500 or so who have succeeded.

The reason why everyone says there is no average, they're trying to sell you something outside of the top1%, they're outside of the top1% themselves, they're not smart enough to calculate the figures. Usually it's a combination of all three.
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nice post
 
birzos said:
On mid timeframe charts, like 60mn, 1-2% per month assuming you are in the top 1% who are the only ones making any profits, with account sizes in the high 5figures and low 6figures.

Unless you have something seriously special, remembering the top 1% have the same knowledge close to or above a millionaire, with your account size the expectancy is negative.

Simply because your capital does not produce a positive return on effort without decades of experience behind you. The average is skewed to the top, that's synthetic asset classes at work.

<top1% loss
=top1% break even
top1% 1-2% per month
top0.1% 3-5% per month
top0.01% 7-10% per month
top0.001% 15-20% per month

The top 0.001% who generate those returns consistently over 15-20years starting with $1,000 capital will become a billionaire, there are currently 2,500 or so who have succeeded.

The reason why everyone says there is no average, they're trying to sell you something outside of the top1%, they're outside of the top1% themselves, they're not smart enough to calculate the figures. Usually it's a combination of all three.
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Are those hard statistics or someone's guesstimate? Can you direct me to the study that obtained those numbers?

Thanks.
 
ironchef said:
Are those hard statistics or someone's guesstimate? Can you direct me to the study that obtained those numbers?

Thanks.
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Right, so you are outside of the top 1%, it's all on the internet, you just have to search for it.
 
birzos said:
Right, so you are outside of the top 1%, it's all on the internet, you just have to search for it.
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You don't really need to know if I am inside or outside the 1%. :)

I did Google before I asked you. Could not find the data. Can you tell me what should I Google in order to get those statistics?
 
You're much more likely to lose 100% in a month day trading stocks...rather then gaining 10 or 20%. o_O

If you ask me, that's not a good Risk vs Reward proposition.
It's so easy to lose money, but the potential gain is just mediocre....if you let that equation spin around...it will only lead to failure.

I'm not saying all this because I'm against day trading; I'm not....but you have to know what you're doing and what you're trading,

You have to structure the trading game and formula in your favor to survive and thrive,
It's as clear as light and day -- but some people are inherently blind and defective,
 
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And I think to be in the top 1% you need the very best in trading equipment hardware & software, data, systems, etc.
Your chance of becoming another Bill Gates of trading is a bit late, the horse has bolted.
Your only chance imo, is becoming a savvy investor, that is trader with a longer term prespective, that is only what will allow you to compete and make a profit.
Forget the "buy for dividends" mantra BS, I mean trade the longer term trends for capital gains.
Right now resources have been running, that's the bandwagon you should have hitched your horse up to about a month or so ago.
 
lawrence-lugar said:
You're much more likely to lose 100% in a month day trading stocks...rather then gaining 10 or 20%. o_O

If you ask me, that's not a good Risk vs Reward proposition.
It's so easy to lose money, but the potential gain is just mediocre....if you let that equation spin around...it will only lead to failure.

I'm not saying all this because I'm against day trading; I'm not....but you have to know what you're doing and what you're trading,

You have to structure the trading game and formula in your favor to survive and thrive,
It's as clear as light and day -- but some people are inherently blind and defective,
More...

I like the market, and for 3 years I studied many sources, books, and some practice, I believe it is possible to the get a good return, but I want to maintain realistic too.
 
ironchef said:
Are those hard statistics or someone's guesstimate? Can you direct me to the study that obtained those numbers?

Thanks.
More...

They are guesstimates... because I seriously doubt that any 'info' on the internet about this is hard evidence... so the detailed numbers @birzos gives are merely based on chinese whispers.
 
Evermore2017 said:
In average.
Daytrading.
Account size: $30K
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1-3k per month if you're part of a small percentage that knows what they're doing.
 
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