Q&A by Don Bright
TRUE OR NOT TRUE?
I know a guy who has been trading his own money for a few years now. He daytrades commodities/futures with claims of 4% a month with return on investment (Roi) equaling 48% a year! With margin he can make twice that, he says. Iím confused because Iíve read and heard that some of the best traders make 20% per year daytrading, so is he most likely exaggerating? óFalcon
This is a really good question, on several levels. I have been telling my traders over the last 30 years to focus on making consistent profits until they make their first $5 million or so, then they can focus on return on interest.
First off, letís sort out the phrase ďHow much should I expect to make. ...Ē We all know that we cannot expect to make anything in trading. However, none of us would ever get involved in this business if we didnít plan on making money, would we? There really is no norm involved in trading, regardless of product, time frame, or capital considerations.