What Does the Average Day Trader Make?

Sep 21st, 2013 | By | Category: General Comments
Share on StockTwits

Q: What does your average day trader earn in percentage terms per year?  question-cartoon1


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.

Order The PlayBook

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

No relevant positions

Find Your Trading Confidence in Just ten Weeks
Discover the principles of elite performance and the eight
core topics that have the
greatest impact on your
trading success.
Tags: , ,
  • 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 :)

smb newsletter
Options Risk Disclaimer    Forex Risk Disclaimer

1. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through smbtraining.com) and in person. SMB TRAINING also offers web-based, interactive training courses on demand.

2. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

3. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

4. SMB Training and SMB Capital Management, LLC are separate but affiliated companies.

5. No relevant positions

6. Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

Log in | 80 queries. 1.400 seconds.