Trading Performance – Is a 10% Return Per Day Too Much to Ask From Trading?
10% a day is astronomical! Making 10% consistently on every trading day on almost all 200 trading days in a year would result multiplying your starting trading capital by a factor of 189 million! it is simply impossible to sustain such growth because markets are small and wealth gain is finite. As your trading position grows in size the harder it becomes to get filled at a good price, let alone you would soon reach your brokerage firm’s trading size limit.
Nobody makes 10% per day consistently!
Even in the most profitable trades of Warren Buffet or George Sorros you won’t find a consistent 10% return per day. The rule is simple; while it’s possible to make 10% fixed on small trading accounts, (well under 1 million dollars) it is still not possible to make 10% compound gains on a daily basis.
How much do I need to make per day to turn $10,000 into a million in a year?
That is realistic and many have done it, you only need to multiply your $10,000 capital by a factor of 100 over 200 trading days, the daily required growth per trading day is: 2.32%, or to put it in monthly perspective 46.7% account growth per month. That is entirely possible with a good trading system. However even 46.7% per month or 2.32% per day is a realistic target for only extremely well experienced traders. Low consistent profitability is more important than occasional high return periods that are bound to soon turn into losing periods.
Actual trading conclusions from daily advisory services.
I have checked the results of many day trading online advisory and mentoring services, most of them have periods of high profitability that is not consistent from year to year. Here’s a short summary on the following services:
Mohan market force: a good service that explains some key things but still fails catastrophically as market conditions suddenly change. Mohan’s approach doesn’t adapt fast enough to dynamic changing markets. Therefore is not consistent over the years.
Larry Williams: Fundamentally good service and advice but lacks transparency and fails to educate you, consistency is debatable but overall service is good and can make novice trader money but will not make them a professional trader.
Traders International: Again the service lacks full transparency, I understand they don’t want to give away their proprietary trading methods but they have very good mentoring which can help the novice gain experience reading the charts and pick signals off them. Their true advantage to other similar services is profitability consistency, they make low but very consistent profits month in and month out and they use much tighter stops than
Mohan market force service.
If you truly want to gain experience and be able to trade on your own even after you quit the mentoring program then I think Traders International is the best that is available. You still have to work hard to catch up with their in-depth analysis but you will have an edge over other new traders.
Article Author: Paul J Murphy