Returns per month by trading ?...
- Thread starter aishwarya_85
- Start date
A
It depends on multiple factors like
1. system / strategy used to trade
2. capital or fund size employed
3. position sizing techniques
4. Type of money managment used
and much more market condition of that period
If you use hyper leverage and agressive compunding then even 100% might looks small but if you ask for consistency then with max drag down of 28 to 42 % if acceptable then one can acheive 15 to 40 % consistently if real market conditions permits
1. system / strategy used to trade
2. capital or fund size employed
3. position sizing techniques
4. Type of money managment used
and much more market condition of that period
If you use hyper leverage and agressive compunding then even 100% might looks small but if you ask for consistency then with max drag down of 28 to 42 % if acceptable then one can acheive 15 to 40 % consistently if real market conditions permits
Well as a trader we need substantial margin money + MTM money to take small losses or keep stop losses at convienient distance. (unless one is a day trader..).
Margin money is ofcourse not a problem when stocks can be used for margin.
I am sure that reserve cash @ 12pa + brokerages eats into big chunk of my profits.
So a percentage term returns will be much better to compare rather than monetary terms.
Also how much of your wealth is your trading capital, investment capital in secondary market and non-equity related instruments.
I use about 4% of my net worth as trading capital, 10% of my networth in equity, 10% in mutual funds. So about 25% in Equities. 70% in real estate and 5% emergency fund.
returns in a year!. I am wondering whether I will finish this year with good profit. But my guess is my trading capital might double.
Margin money is ofcourse not a problem when stocks can be used for margin.
I am sure that reserve cash @ 12pa + brokerages eats into big chunk of my profits.
So a percentage term returns will be much better to compare rather than monetary terms.
Also how much of your wealth is your trading capital, investment capital in secondary market and non-equity related instruments.
I use about 4% of my net worth as trading capital, 10% of my networth in equity, 10% in mutual funds. So about 25% in Equities. 70% in real estate and 5% emergency fund.
returns in a year!. I am wondering whether I will finish this year with good profit. But my guess is my trading capital might double.
Last edited:
Hi I am a novice, both to trading and to this forum. What I understand is that trading demands a lot of dicipline. I mean wait for a time period of few months for the stocks price to increase. I have this habit of investing and expecting quick returns and I have found often that I have picked up the correct stock but I had sold them off early fearing the initial dip. So my friend exercise patience.
bye.
bye.
It depends on multiple factors like
1. system / strategy used to trade
2. capital or fund size employed
3. position sizing techniques
4. Type of money managment used
and much more market condition of that period
If you use hyper leverage and agressive compunding then even 100% might looks small but if you ask for consistency then with max drag down of 28 to 42 % if acceptable then one can acheive 15 to 40 % consistently if real market conditions permits
1. system / strategy used to trade
2. capital or fund size employed
3. position sizing techniques
4. Type of money managment used
and much more market condition of that period
If you use hyper leverage and agressive compunding then even 100% might looks small but if you ask for consistency then with max drag down of 28 to 42 % if acceptable then one can acheive 15 to 40 % consistently if real market conditions permits
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