Can You Achieve a 20% ROI as an Average Trader? Unveiling the Truth

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Dear Mr Bellafiore,

I have recently started listening to your book One Good Trade. It is simply an excellent book that has a structure and discipline all to its own. A recent friend recommended the book which I am very grateful for.

I am 53 years old, and after working in the home building business, I’m ready to try something new. I’m not your typical engineer or operations person. I’m creative, and I understand business. I want to do something now that I believe allows me to leverage my previous skills while providing a rewarding environment. Plus, I have an existing portfolio that is presently being managed by (123) Capital. I’m not good at letting others manage my money. I’m fine losing money when I am part of the process and high-quality process has occurred. I don’t like losing money when others are making my decisions.

I would like to be a very good trader. I need exposure to the most efficient path possible to evaluate if this is for me. I’m not a gambler. I like to work hard at quality, high-level due diligence that leads to well-formulated business decisions. I figure I have a year to evaluate the trading concept. If I can’t see some small glimmer of light in trading, then reluctantly I will return to home building to start a small firm on my own. I have completed a new business study to formulate the start up of a small home-building entity, which if leveraged properly, might have ROI of 25-30% while providing for other payroll income.

So I need guidance. In the last year, I took a course with another firm, but I’m disappointed that I didn’t become aware of the educational services offered at SMB. I also subscribe to TC2000. I have started to write my own scans using the PCF language looking for setups that are a function of candle formation, support and resistance, volume and other indicators. This analysis is mostly technical unless I am looking for position trades that will last a few months. The most critical aspects for me is getting the stop loss and target proper. I continue to read anything that looks to provide quality insight. I’m all about process flow. Getting systems to run at high levels of efficiency is what I am good at. But at the same time I have an intuitive eye to discern compatible or similar likes and dislikes. And, I have good pattern-recognition skills.

So my first goal is just to understand a basic business plan as a trader. Naturally, I need to make some assumptions. The big assumption… suppose I am an average-SOLID  trader at the end of the day which I will not be happy with. Can an average trader make a ROI of 20%? I need to understand this most fundamental aspect? It would be a poor business decision for me if I could not generate a 20%-30% return? I’m not concerned at this time with what the upside could be. I want to look at what worse case might be in a year.

Mike, if you have read this email to this point, you are more than a gentlemen. I appreciate any feedback you might offer.


Is 20 percent an achievable return for an average trader?

Yes, 20 percent is achievable for an average trader. There are multiple traders in the SMB Options Tribe who are making 50+ percent a year. Some of these trade strategies can be found at The Options Tribe as Video Strategy Series. These strategies do not involve 6 1/2 hours in front of your trading screens. First, you have to learn the strategies, develop the skill to trade them in real-time, work with a mentor, and push yourself to trade them better. They were built for someone like you who wants to learn how good they can be as a trader while not having to quit their day job. If you’re not well-versed in options you should first take Seth’s Options Foundation Course.

Intraday equities traders can make much more than 20 percent because of leverage and our ability to be very efficient with our capital. The failure rate can be quite high for intraday trading.

I love your acknowledgement that you would not be happy being average. One of the great rewards for being a pro trader is learning how to be your best for sustained periods of time. I’m with you: Who the heck wants to be average?

Thxs for sharing your story. I obviously can relate to much of it. If you want to discover if trading is your passion, check out The Options Tribe. You will learn how to be a better trader with the Options Tribe community and mentors.

I hope that helps.

You can be better tomorrow than you are today!

Mike Bellafiore

The PlayBook

One Good Trade

No relevant positions

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