Yearly return... What should amateurs aim for?

D

Debaser82

Any thoughts on this?

Doesnt matter what you bought this last 2 years, be it sugar, oil, Amazon or Citi....

If you held it for longer then a few months you are up more then 10% at the very minimum.

Is this a realistic longer term return or are these special circumstances that should not be taken for granted at all...
 
Quote from Debaser82:



Doesnt matter what you bought this last 2 years, be it sugar, oil, Amazon or Citi....

If you held it for longer then a few months you are up more then 10% at the very minimum.
More...

unless you bought BORDERS it went bankrupt :D

was (bgp)
 
Don't aim for a "return," aim for $. Doubling a $5k account isn't that difficult; running around screaming of your 100% return will make you seem like a fool. Aim for $. As an amateur, it's unlikely you'll have lots of money, so you should aim first to learn and be able to break even... but when you do set a performance goal, it should be dollar (or EUR, etc.) base, not %.

This applies ESPECIALLY to daytrading. I'm always repeating this message but many people simply don't comprehend.
 
Quote from NY0BScalper:

Don't aim for a "return," aim for $. Doubling a $5k account isn't that difficult; running around screaming of your 100% return will make you seem like a fool. Aim for $. As an amateur, it's unlikely you'll have lots of money, so you should aim first to learn and be able to break even... but when you do set a performance goal, it should be dollar (or EUR, etc.) base, not %.

This applies ESPECIALLY to daytrading. I'm always repeating this message but many people simply don't comprehend.
More...

I believe the reason people aren’t listening to you is because simply put your wrong.
If someone sets $ € targets then they get fixated with that amount and as the account grows they tend to have trouble increasing their target in accordance to the new account size , were as if there target is 1% of their account they will find it easier to adjust to new increased unrounded targets.

All aside I don’t personally believe in setting targets, just take what you can and give nothing back to the market and don’t stop just because you have hit your target for the day , week, month or year.
 
Amateurs 100% yearly.

Professionals/highly experienced traders average 40% per annum for 12 years without compounded.

If you compound 40% per annum for 12 years, your investment of $100,000 turns to 5,669,380 ($5.6 million) at the end of 12 years (magic).
 
Wrong question. You should be asking how little can you lose. The winners will take care of themselves.

If you put on a trade that makes 10% in a month, it could also lose 10% in a month (volatility). You might hit a winner with high vol that gives you a great return, but what matters is what your series of trades return over time.

I would focus on just not blowing up; you will spend a lot of time thinking about how not to blow up with leveraged products like FX or futures, which will make you a infinitely wiser trader. Why? Because it makes you think about the risks you take, and what upside is realistically possible without losing everything. Ie if you have +100% years for 3 years and lose everything in year 4, were you successful?

Spend time thinking about how much you could lose with your strategy; its a smarter way to play it.
 
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