What Does the Average Day Trader Make?

Sep 21st, 2013 | By | Category: General Comments
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Q: What does your average day trader earn in percentage terms per year?  question-cartoon1

@MikeBellafiore

SMBU recently sent a survey to the SMB Trading Community asking of their trading frustrations. From this survey we ferreted out the top five trading frustrations. Then we held a Webinar to offer solutions. Here is a link to that Webinar: Solving the Top Five Trading Frustrations From the SMB Trading Community. During this Webinar we were asked the question above.

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In One Good Trade I wrote about the percentages a trader can earn on his trading book. Those returns can be obscene. So ridiculously good that I wrote no one would believe them. This is a function of many factors:

1) Day Traders (I say Intraday Traders) are expertly efficient with their capital.

2) We trade so actively that we have more opportunities. For example, did you see FB explode into the close? TSLA the past few? P this week? The solars on the open? We see all of these moves in real-time with sophisticated and powerful trading tools.

3) We can leverage our money to many multiplies than a hedge fund, mutual fund, institution, or retail trader/investor. Day trading leverage to a trading firm is calculated much differently than for a hedge fund. We can trade bigger intraday accounts with less money.

Let’s just say our returns in percentages are obscenely higher than what a portfolio manager might return or what many consider a solid increase on their capital. If you insist on an answer check out One Good Trade. I am not answering that question here and starting all the disbelief :) . Kiddingly, I want to enjoy my weekend.

Related blog posts:
The Money Trade
Your Job is to Not Make Money

You can be better tomorrow than you are today!

Mike Bellafiore

One Good Trade

The PlayBook

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  • Mike

    ” I am not answering that question here and starting all the disbelief :) . Kiddingly, I want to enjoy my weekend.”….

    The weekend? LOL…..if you answered this you would be badgered for months….

  • Bella

    Very true Mike!

  • Nik

    I know you didnt want to start this, but sorry … couldnt help myself)
    If you take your metrics from Playbook – 5/1 trades (5 – profit target, and 1 – stop loss) and 50/50 hit ratio. Then assume your daily stop loss is 2% of your capital (conservatively… i guess), and you take 30% of that to risk on your A+ setups. It all comes down to how many of those setups you see (and trade) per year. Say you trade your A+ setup once each day (250 days) then your return should be about 230%… ? not bad

  • Bella

    higher :)