What sort of returns are people really making?

[pedro01]

Trying to specify amounts in pounds/dollars/Euros is quite difficult and hard to quantify.
Lets look at it another way.How many pips can you make a day. With good money management there are several methods on this site that show you how to make30/50 pips a day, if you are patient and disciplined making $300 a day on a 30k account is very achievable, if you are willing to put in the effort and have the patience and discipline.

Which one's specifically ?

Seems to be so many people giving advice here it's tough for a newbie to figure out which one's are worth following...

 

[jayjay121]

im too confused, to me there does not seem to be any traders on here that make an average of 1% a day....im talking if u averaged your profits for the year...i bloody hope imwrong or im really up against it

 

[gamma]

Which one's specifically ?

Seems to be so many people giving advice here it's tough for a newbie to figure out which one's are worth following...

If you are referring to which pairs to trade
I only trade the 4 majors
gb/usd
euro/usd
usd/chf
usd/jpy

A large part of my trading involves using N.B'S BREAKOUT STRATEGY
I have added my own additional features to help me but if you follow the startegy I am sure you will find it very useful

 

[gamma]

but to make 1% a day just on average would make me the best performing trader on this bb, which is unlikely but 1% a day sounds very achievable. To be honest i will be swinging a bit and daytrading but if i cannot make 1% a day on average over a year, is it really worth my time???

To make 1% a day would not make you the best performing trader!

there are a lot of traders who make more than that modestly prevents them from acknowledging it.

Quite simply with a 30k capital if you cannot make 1% you should reconsider if trading is for you.

 

[jayjay121]

To make 1% a day would not make you the best performing trader!

there are a lot of traders who make more than that modestly prevents them from acknowledging it.

Quite simply with a 30k capital if you cannot make 1% you should reconsider if trading is for you.

thankyou, this is what i was waiting for, someone to come and show some balls that it can be done and should be done......great now i can move on knowing im not out of my depth

 

[Joey25]

thankyou, this is what i was waiting for, someone to come and show some balls that it can be done and should be done......great now i can move on knowing im not out of my depth

Well done. What outstanding due diligence. All you've got to do is do it now.

 

[Hoggums]

thankyou, this is what i was waiting for, someone to come and show some balls that it can be done and should be done......great now i can move on knowing im not out of my depth

Your biggest challenge will be to make greater than -1% per day.

Most people who SB don't.

 

[gamma]

thankyou, this is what i was waiting for, someone to come and show some balls that it can be done and should be done......great now i can move on knowing im not out of my depth

You are more than welcome!
Having said it can be is being done by several traders let me also advice you
Discipline, preparation, money management, trade management , patience and avoiding greed. You should have no problems making your 1%
hope you find the above advice useful
good luck!

 

[Joey25]

And when you've multiplied your money 180-fold in 2 years time, you will let us know won't you?

 

[gamma]

Your biggest challenge will be to make greater than -1% per day.

Most people who SB don't.

I am not sure if I totally agree with you there hoggums
Its not spread betting per say but how you manage your S.B account that dictates whether you make it or not.
I know several traders who use direct access or other forms and lose, I also know several traders who only use S.B and do very well.

 

[jayjay121]

yeah, yeah, i know the stats are well against me and its much more likely ill blow out but having a sound business plan is a start....by the way im not doing SB, im going stocks route to reduce risk with a top down approach .....cheers guys

 

[gamma]

And when you've multiplied your money 180-fold in 2 years time, you will let us know won't you?

2 years= 400 trading days at 1% a day how do you come up with a 180 fold ratio?

No where on this thread have I seen Jayjay talk about compounding
I am sure he is intelligent enough to realise that going down that road presents a different set of problems

 

[Joey25]

2 years= 400 trading days at 1% a day how do you come up with a 180 fold ratio?

No where on this thread have I seen Jayjay talk about compounding
I am sure he is intelligent enough to realise that going down that road presents a different set of problems

I used 520 business days. Why would you choose to overlook the compounding result, other than it illustrates what an improbable proposition it is?

Price any financial asset such as an option and you will use continuously-compounded returns, exp(rt).

 

[Hoggums]

I am not sure if I totally agree with you there hoggums
Its not spread betting per say but how you manage your S.B account that dictates whether you make it or not.
I know several traders who use direct access or other forms and lose, I also know several traders who only use S.B and do very well.

Quite agree, unless you are a scalper I don't believe using SB or DA should make any (reasonable) difference to your profitability.

I trade solely SB and started out as the "typical" newbie, did well, made 1,000's in the first 3-4 months - thought I knew it all then lost it in about 3 days when the markets reversed. Most people never come back from this, maybe this is what separates me from the other 85%+ - I persevered, I don't know how many countless hours of researching and testing I've done over the years.

1% is definitely doable - however I don't aim for this because of risk aversion. I only keep about 1/3 of my pot in the SB accounts - so they are in effect generating > 1% a day but the rest of the money is sitting in high interest accounts ready to be transfered in if needed. (hopefully never!)

 

[gamma]

I used 520 business days. Why would you choose to overlook the compounding result, other than it illustrates what an improbable proposition it is?

Price any financial asset such as an option and you will use continuously-compounded returns, exp(rt).

Thanks for the explaination.
You are very right about compounding the result it certainly would illustrate and
magnify what an improbable proposition it would be.
Well in my opinion anyone who trades from compounding and increasing trade size for this reason will soon have a nasty wake up call.

 

[Joey25]

Thanks for the explaination.
You are very right about compounding the result it certainly would illustrate and
magnify what an improbable proposition it would be.
Well in my opinion anyone who trades from compounding and increasing trade size for this reason will soon have a nasty wake up call.

I think you're definitely right gamma. I don't think I could stomach much more risk, so withdraw pretty much all of it.

I love NB general approach by the way - particulalrly the way he targets vol. The guy is so generous with what he has provided there. Seems to work well for indices, so fingers crossed...

 

[gamma]

I think you're definitely right gamma. I don't think I could stomach much more risk, so withdraw pretty much all of it.

I love NB general approach by the way - particulalrly the way he targets vol. The guy is so generous with what he has provided there. Seems to work well for indices, so fingers crossed...

Must confess I do not do indices but its good to hear that it works there as well
do you have to adjust it somehow as unlike currencies there a closed period during the day.

 

[Joey25]

Must confess I do not do indices but its good to hear that it works there as well
do you have to adjust it somehow as unlike currencies there a closed period during the day.

I tried to post a graph, but it looked awful. It just worked very well for the S&P, with a breakout, pullback and collapse.

I'm experimenting with capturing a proportion of the daily vol from the previous day, rather than ATR - taking the VIX number and targetting a % of the range based on that.

 

[Aspire]

no sorry, im probably confused.

im just talking from the view that the average hege funder will earn 30% a year on their capital.........If i make 1% a day on average over the course of a year, that would make me perform better than most wouldn't it and my yearly gain would be way above 30%.


please clarify as im truely confused even more now.....thanks

Hedge fund traders are in a very different situation to you or I.

Only part of what they get paid is a cut of the profits, a lot of their money comes from taking a % of the money under management as a management fee.

They want to achieve good returns in order to attract more investors but it is not essential to them that they even come out on top. If the fund loses 10% but the markets have fallen by 25% then they still get theri management fee and can tell investors that they have done a good job by outperforming the market. therefore they will usually use quite low risk strategies (compared to most smaller independent traders) that have a high correlation to overall market performance.

Also they will have positions that are much much larger than almost everyone who reads this board will ever have. These cannot be easily be put on or wound down which brings with it a whole load of new problems that we don't generally have to worry about.


As others have said there are many traders who read these boards who can make over 1% per day. There are many times more people that don't but if you work hard enough it is a good and realistic target.

 

[WizardAA]

What does SB and NB mean plz ?