How Much Profit Does the Average Successful Trader Make?

[edgararakelyan 10]

I've only been trading for about 8 months and thus far I have made about 30% profit of my initial capital. So I was wondering how much a good day trader makes each year? 50%, 100%, etc.

[M.A 10]

Only Profit doesn't tell the whole story of success.

Which would u prefer? profit percentage of 100% with drawdown of 30% or profit percentage of 50% with drawdown of 5%.

More return comes with more risk. It doesnt matter if he is a day trader or swing trader or scalper. Usually day traders target around 10% per month which I think is difficult (assuming that drawdown target is under 15%).

[MightyMouse 12]

A good trader in a bad year losses less than a bad trader in a bad year. A good trader in a good year makes more than a bad trader in a good year. A good trader has more good years than a bad trader.

 

30% of 5000 doesn't even cover property tax in some parts of the world.

[edgararakelyan 10]

A good trader in a bad year losses less than a bad trader in a bad year. A good trader in a good year makes more than a bad trader in a good year. A good trader has more good years than a bad trader.

 

30% of 5000 doesn't even cover property tax in some parts of the world.

 

I'm getting much better and more profitable. When I make a mistake which I often do, I always learn from it and won't make it again. By the way I'm only 16.

[Patuca 13]

A good trader in a bad year losses less than a bad trader in a bad year. A good trader in a good year makes more than a bad trader in a good year. A good trader has more good years than a bad trader.

 

30% of 5000 doesn't even cover property tax in some parts of the world.

mm leave the kid alone...he is trying..may be doing better than you:rofl:

[Patuca 13]

I've only been trading for about 8 months and thus far I have made about 30% profit of my initial capital. So I was wondering how much a good day trader makes each year? 50%, 100%, etc.

look young feller you are doing good...probally better than these ole farts here...don't pay attention to MM he is an anti gun ..pro golf club liberal..apparently. that is, he will not shoot anyone as he has no gun to do so..but apparently (deduced from his posts on thread to arm or disarm) has no qualms about cracking a persons skull with a golf club. Edited January 15, 2013 by Patuca

[MightyMouse 12]

look young feller you are doing good...probally better than these ole farts here...don't pay attention to MM he is an anti gun ..pro golf club liberal..apparently. that is, he will not shoot anyone as he has no gun to do so..but apparently (deduced from his posts on thread to arm or disarm) has no qualms about cracking a persons skull with a golf club.

 

You are making threads collide. What happens in "Arm or Disarm stays in Arm or Disarm". You are screwing up the facts. I would shoot an intruder if I had a gun in my home. I do not play golf so I do not have golf clubs, but I do have composite baseball bats.

[MightyMouse 12]

I'm getting much better and more profitable. When I make a mistake which I often do, I always learn from it and won't make it again. By the way I'm only 16.

 

That's a great age to start. A mistake is not always a losing trade and a losing trading is not always a mistake. Learning is not making sure that you don't take the same loss as you did last trade. You won't learn anything. Really important to understand that.

 

Don't mind Patuca. He's one of those liberals who wants to see everyone with a gun. We'll see if he actually uses his guns when I knock his motorcycle over.

[Roger Felton 10]

mm leave the kid alone...he is trying..may be doing better than you:rofl:

 

Right, Patuca. I learned a while back that MM will try to bully you if you're struggling and reaching out to the forum for help and he will try to bully you if you are enjoying success and are reaching out to others to help them. There's alway a small percentage of these types in any group so just ignore him, Edgar

[MightyMouse 12]

Right, Patuca. I learned a while back that MM will try to bully you if you're struggling and reaching out to the forum for help and he will try to bully you if you are enjoying success and are reaching out to others to help them. There's alway a small percentage of these types in any group so just ignore him, Edgar

 

Well, gosh, Edgar, can you point out one single instance that I bullied someone enjoying success or reaching out to help? Just one.

 

You might mean that I ask questions of vendors that they can't answer and it messes up the sales pipeline. If that is what you mean, then I am probably guilty but it isn't intentional since if you could answer the question, it wouldn't mess up the pipeline.

[Larry1234 10]

I've only been trading for about 8 months and thus far I have made about 30% profit of my initial capital. So I was wondering how much a good day trader makes each year? 50%, 100%, etc.

 

In my opinion you made a decent profit if the risk taken by you is moderate. We can compare return only in terms of risk. We all know Higher the risk, higher the risk.

 

If you have done trading in derivative market and made 30%, then its not enough. Derivative comes with a higher if not hedged,.

[Roger Felton 10]

Well, gosh, Edgar, can you point out one single instance that I bullied someone enjoying success or reaching out to help? Just one.

 

You might mean that I ask questions of vendors that they can't answer and it messes up the sales pipeline. If that is what you mean, then I am probably guilty but it isn't intentional since if you could answer the question, it wouldn't mess up the pipeline.

 

Name one time? You just did with our friend Edgar. He asked legitimate questions and needed guidance and you, in true form, felt you had to bully and belittle him with that juvenile response.

 

The only thing worse than a bully is an ignorant bully. I teach trading but there never is or ever has been a "pipeline". I don't even have a single sales person and I don't advertise. When you don't have either of those things in your company, you don't have a "pipeline". You never understood the concept of a company doing well simply because it does a damn good job and word gets around.

 

You don't "ask questions", you impose your flawed belief system through snide remarks that make your vendetta agenda crystal clear. It's just another form of bullying...and what you did to Edgar was another.

[MightyMouse 12]

Name one time? You just did with our friend Edgar. He asked legitimate questions and needed guidance and you, in true form, felt you had to bully and belittle him with that juvenile response.

 

The only thing worse than a bully is an ignorant bully. I teach trading but there never is or ever has been a "pipeline". I don't even have a single sales person and I don't advertise. When you don't have either of those things in your company, you don't have a "pipeline". You never understood the concept of a company doing well simply because it does a damn good job and word gets around.

 

You don't "ask questions", you impose your flawed belief system through snide remarks that make your vendetta agenda crystal clear. It's just another form of bullying...and what you did to Edgar was another.

 

My response is juvenile? A good trader in a bad year losses less than a bad trader in a bad year. A good trader in a good year makes more than a bad trader in a good year. A good trader has more good years than a bad trader.

 

30% of 5000 doesn't even cover property tax in some parts of the world.

 

There is not one word of that which is untrue or bullying.

 

I will translate it for you in long form to help you understand since you didn't understand the first time: You will have good years and bad years as a trader no matter how good you are. A good trader will tend to have more good years than bad years. A good trader will also have better good years than a bad trader. A bad trader will have deeper bad years than a good trader's bad years.

 

whether it is 6%, 10% or 500% what matters is if you can make enough money and not so much the percentage return.

 

I then followed up with : A mistake is not always a losing trade and a losing trading is not always a mistake. Learning is not making sure that you don't take the same loss as you did last trade. You won't learn anything. Really important to understand that.

 

My advice is, of course, just my opinion and from the heart and I don't sell it on a website and I don't trade sim. You do not have to agree with me. You can post your own opinion if you have one instead of coming out making accusations that you cannot back up.

 

Patuca and I are no different than the kids that a teacher needs to keep separate in class. You are mistakenly jumping aboard a band wagon with no wheels. One day I may be glad he has a gun.

 

I did make the mistake of calling you Edgar. My apologies to Edgar.

 

But, please share how your posts to Edgar gave him any advice. You did confirm that you sell and that word gets around about how good you are, but I didn't see anything that seemed like a response, good or bad, to his question. Would you mind pointing it out?

[Roger Felton 10]

My response is juvenile? A good trader in a bad year losses less than a bad trader in a bad year. A good trader in a good year makes more than a bad trader in a good year. A good trader has more good years than a bad trader.

 

30% of 5000 doesn't even cover property tax in some parts of the world.

 

There is not one word of that which is untrue or bullying.

 

I will translate it for you in long form to help you understand since you didn't understand the first time: You will have good years and bad years as a trader no matter how good you are. A good trader will tend to have more good years than bad years. A good trader will also have better good years than a bad trader. A bad trader will have deeper bad years than a good trader's bad years.

 

whether it is 6%, 10% or 500% what matters is if you can make enough money and not so much the percentage return.

 

I then followed up with : A mistake is not always a losing trade and a losing trading is not always a mistake. Learning is not making sure that you don't take the same loss as you did last trade. You won't learn anything. Really important to understand that.

 

My advice is, of course, just my opinion and from the heart and I don't sell it on a website and I don't trade sim. You do not have to agree with me. You can post your own opinion if you have one instead of coming out making accusations that you cannot back up.

 

Patuca and I are no different than the kids that a teacher needs to keep separate in class. You are mistakenly jumping aboard a band wagon with no wheels. One day I may be glad he has a gun.

 

I did make the mistake of calling you Edgar. My apologies to Edgar.

 

But, please share how your posts to Edgar gave him any advice. You did confirm that you sell and that word gets around about how good you are, but I didn't see anything that seemed like a response, good or bad, to his question. Would you mind pointing it out?

 

Good points, MM. If one is truly a "good trader" then a losing trade should never be considered a mistake...just one more in a long series of trades taken in a career. I reached the point years ago that, once I pull the trigger and enter a trade, and I have done my job correctly, then the outcome of that, or any other trade, is irrelevant. Trading sans mistakes is far more important than whether it wins or loses.

Edited January 16, 2013 by Roger Felton

[Roger Felton 10]

Was that an advert Roger,or a statement of facts?...was it just a bumch (correct spelling)of words? Let's ask the OP if he feels you have answered his question.

Let's throw it open to the floor,how about it folks is Roger here to:

 

A- give an opinion on the thread starters' question ()

 

B- To accuse MM of bullying (:rofl:)

 

C- To remind us that he's still feeling hurt that everybody can see right through him and is deeply unimpressed by the crocodile tears default mode routine (:sleep: )

 

I'm just jerking MM's chain...but don't tell him. He's a good guy....I just like to put ruffles on his ridges once in a while. Hard to find people really fun to jack with in play these days...but MM made my day. Only problem is, now it's his turn! LOL

[:::grimReaper::: 10]

I've only been trading for about 8 months and thus far I have made about 30% profit of my initial capital. So I was wondering how much a good day trader makes each year? 50%, 100%, etc.

 

How many trades?

 

How much risk of capital per trade?

[Vinayak 10]

If you can have a 20 percent return on investment on your trading capital in a year that would make you a highly successful trader. I think anywhere from 10-15% returns will classify someone as an average successful trader.

[4xtrader2 10]

If you can have a 20 percent return on investment on your trading capital in a year that would make you a highly successful trader. I think anywhere from 10-15% returns will classify someone as an average successful trader.

 

I've traded forex for the last 7 years but didn't become profitable until last year. By the end of last year I ended up with 9.8% Month over Month for a total of 119% gain for the year. So far this year I am ahead by 13.8%.

 

I heard that a good stock trader will do 20% per year but a good forex trader can do 20% per month. I think with perseverance and dedication you can attain that goal. Start small, reinvest your profits, capitalize your account, and plan to spend a lot of time assessing your performance and the market. That will be the key to your success.

[TEAMTRADER 10]

Hi Edgar,

The profitable trader can vary and no one can tell you what is average - or indeed what is good and what is great. They can only say what they have achieved or what their friends have achieved.

Best trader I know has profited 700% in 5 weeks but the pressure is enormous and he lost half of that in two days.

Different methods result in different profits and if you have a good method then stick to it and unless you run into a loss making period that is unacceptable to you, then refine it at that time.

Other traders can claim what they want but there is only one person that can judge your system against your profits and that is you.

If youd like help with you system I suggest you post your system and let experienced traders give their comments - and perhaps offer advice on how they would trade your system.

I'd be happy to help!

Be content with your lot unless it is not a lot!

Best of luck.

TEAMTRADER

[Gekko78 10]

Tough to answer what is good and what is not. It depends on what you set for yourself. One of my friends who started trading FX recently only started with $500 ......he made $500 in a few months but he took CRAZY risk.....bet it all every time .....he got lucky ..... so his % is 100 which is good % wise but horrible risk wise.......

 

I do not look for a % of my capital ....... P and L tells the story ...... you are either making consistent money or you are not....... If you have to set a % I would wait until you have traded successfully for a year then use that ......a few months is not enough time. you are kicking A$$ though.....I wish I had the motivation when I was 16

 

Most investors want to see someone with 3-5 years of consistent returns before they even consider investing . I know you are not a manger I just stating.

[Roger Felton 10]

One of the major trade magazines published a study a couple years ago of the Top 10% that you always hear about - the traders who make money. This group conjures up images of yachts, mansions and parties at the Hamptons. Not really true.

 

If you toss out the outliers like Warren Buffet an the guys who end up making a dollar a year, the "average trader/investor" makes around $100,000 per year. That's probably due to a number of factors. The majority of traders are working off of relatively small accounts. This limits their profit potential from the start and most of what profit they manage to eek out goes toward paying the bills so they struggle to get ahead. Trading is a supplimental income for many.

 

The big high-roller winners you hear about usually manage to lose most of it back over time and a 500K guy ends up averaging closer to 100K. Many traders I know are happy making a couple hundred per day and they set that as their goal average.

[BlueHorseshoe 10]

Many traders I know are happy making a couple hundred per day and they set that as their goal average.

 

Let's just pause here and examine what you're saying . . .

 

Supposing these traders hold three positions a day and, on average, they have two wins and one loss per day. Each trade has a $200 stop and a $200 target, let's say - does that sound fair? So they make $200 per day on average.

 

Their risk per trade is $200, and they apply the "2% rule", so they have a $10k account.

 

After a week they will have made 200 x 5 = $1000.

 

After just ten weeks, they will therefore have doubled the account to $20k.

 

After a full year they will have made a 520% return on their account if they mantain the same position size as when they started.

 

If they double their position size when they double their account they will have made a return of $310,000 after 50 weeks, or 1600%.

 

I imagine that after about ten years they would own most of the world's wealth. Not bad for "only" a few hundred per day!

 

Just in case anyone is thinking "ah, but they'd have to withdraw most of what they made to pay the bills so they couldn't compound it" you need to think again - if I could give you a system such as this are you seriously telling me that you couldn't find a way to support yourself without the trading income for 10 weeks while you doubled your account? With such a guarantee of future wealth anyone sane would go and live in a freakin dumpster for a few weeks!

 

It's disappointing to see people come here over and over again peddling the same worn out spiele . . .

 

BlueHorseshoe

[Roger Felton 10]

Let's just pause here and examine what you're saying . . .

 

Supposing these traders hold three positions a day and, on average, they have two wins and one loss per day. Each trade has a $200 stop and a $200 target, let's say - does that sound fair? So they make $200 per day on average.

 

Their risk per trade is $200, and they apply the "2% rule", so they have a $10k account.

 

After a week they will have made 200 x 5 = $1000.

 

After just ten weeks, they will therefore have doubled the account to $20k.

 

After a full year they will have made a 520% return on their account if they mantain the same position size as when they started.

 

If they double their position size when they double their account they will have made a return of $310,000 after 50 weeks, or 1600%.

 

I imagine that after about ten years they would own most of the world's wealth. Not bad for "only" a few hundred per day!

 

Just in case anyone is thinking "ah, but they'd have to withdraw most of what they made to pay the bills so they couldn't compound it" you need to think again - if I could give you a system such as this are you seriously telling me that you couldn't find a way to support yourself without the trading income for 10 weeks while you doubled your account? With such a guarantee of future wealth anyone sane would go and live in a freakin dumpster for a few weeks!

 

It's disappointing to see people come here over and over again peddling the same worn out spiele . . .

 

BlueHorseshoe

 

Nobody's "peddling" anything but the truth as they know it to be. If you were an actual trader, you would know that your theory collapses in the real world. There's a practical limit to the number of contracts you can trade without getting split fills splattered all over the place, for instance. Any real trader would know the many holes in your stated theory. If it were possible, traders would be doing it..and nobody is.

 

In spite of your claims, you don't have such a system to give. Total BS crap I hear all the time. Trading is NOT a get rich quick scheme, never was & never will be... but so many traders like yourself still think it is. Worn out spiele? Maybe... but sounds like somebody's not listening.

[edgararakelyan 10]

I think I can easily pull 50% gains a year and if you have 1:2 margin then if you get 50% of your total buying power then you are getting 100% of your actual capital. If I were to be trading more capital which I hopefully will be in a couple years and am making the same and if not more gains percentage wise then I'd be making a whole lotta money.

[MightyMouse 12]

 

Just in case anyone is thinking "ah, but they'd have to withdraw most of what they made to pay the bills so they couldn't compound it" you need to think again - if I could give you a system such as this are you seriously telling me that you couldn't find a way to support yourself without the trading income for 10 weeks while you doubled your account? With such a guarantee of future wealth anyone sane would go and live in a freakin dumpster for a few weeks!. .

 

BlueHorseshoe

 

Blue, this is complete foolishness. Everyone knows that you shouldn't trade with wifi reception; besides, it is bad from a dumpster. What you are stating is not possible.