**Average rate of return for day traders**
Day trading is definitely mug money. Why would you risk so much for so much hard work for so little reward? The appeal is of course that it provides easy answers that people want to hear. Evidence of the pathetic growth rates to be made is simply ignored lest it burst the bubble of lying on the beach with the yacht in the background earned after 2 or 3 years in day trading.
The reason the data for growth rates in day trading is so vague is quite simply because it’s probably non-existent. If someone out there was making Stella growth rates we’d probably hear about it, but we don’t.
On the other hand there is someone who has all the books, accounts, data etc to prove their annual average growth rate and that’s the fourth richest guy in the world, Warren Buffet. Absolutely no vagueness there, this guy has returned an average annual growth rate since 1965 of circa 20%.
Now, if warren buffet is making 20% a year we can safely say that’s a good growth rate. Any trading system or investment system that is beating the stock market return of 8% a year and getting near 20% per year return is doing very well. All you need then is capital and compound interest will do the rest.
If that’s not what you want to hear then stick to day trading. |