So I always hear people talking about needing better than a 12% return on trading that people should shoot for, otherwise they might as well leave their money in the stock market and not go through all the hassle.
Is this an annual return they refer to or are we looking weekly or monthly since our trades are compounded? Or does it not matter how you calculate because 15% is 15%?
I am guessing here but I’m thinking that a $500(or whatever currency) increase in your account that started with $5000 is considered a 10% return? Then, it’s a matter of if that happened in a week, month, or year.
Simple interest, not compounding, at least for those that do the math in our head?
1st time I’m hearing about this percentage! Where did you get this statistic actually?
It’s not my statistic. I’ve heard it more than a few times over the years, but I can’t remember exactly where. The stock market can get you 10-12% though so it does make sense that you can sink your money into stocks and not have to worry about anything and still make a good return. So to make it worth your time and headache of trading yourself then you would want to make more than 12%.
Got it mate; Basically, ROI percentage always depends on the traders trading skill. Nothing is impossible here but, 1st of all you have to make sure your trading skill.
It is all relative and initial question is what actually is realistic, especially taking into account risk-profit relation. I mean if you push for profitability than you need to enter into risky, if not very risky trades. On the other side, somebody else will choose steady but lower income