Realistically, how much income would a 3000$ trading account produce in a month, if the investor is smart?
Posted by admin in Finance Sunday, 10 April 2011 11:23 6 Comments
On average that is, with profits and losses both accounted for throughout the year. I have a growing interest in becoming an investor, but i am young and inexperienced. So i was wondering if some veterans could give me some advice?
LOL i dont know any terminology.
an average day for me would be 3-4% gain. but then again, for the most part i just do “rebate trading” because it minimizes risk drastically.
edit: wtf why 4 thumbs down? people in my office have consistent 10-15% days. 3-4% is VERY realistic for rebate trading
There is no way to answer that question. It depends on your ability, your self-discipline and obviously market conditions. Contrary to what many people imply on Yahoo Answers, stock investing is not a win:win deal – you can and will lose money. The other guy who said he makes 3% per day – let’s see your brokerage statement for the past 24 months to see if you really made anything. Lots of people on YA! jump on when the market is on the upswing, invest for a month or two and proclaim themselves geniuses. Until you invest in a prolonged bear market and make money, you are just another shmow-hawk.
The bottom line is that you have no expertise and the market is in a sideways movement for the foreseeable future. I would say you would be lucky to break even, maybe lose 2-3% per month if you are smart.
If anyone tells you that they outperformed the index (eg. the stock market) over the LONG-TERM (eg. 20 plus years) and accounting for ALL fees and losses, they are probably lying to you. At the very most, you can expect average returns of 10%-12% annually- and you will see great fluctuations in this number. For example, some portfolio managers could potentially be ‘up’ 200% or more in one day- but will see equivalent or greater losses the next day.
If you have a growing interest in being an investor, I would suggest that you take a look in the newspaper/online, and see what entry-level investment careers are available. Use your $3000.00 to take any required courses, and begin applying for jobs. You can use your job to support your passion while you gain the necessary knowledge and skills to manage your own portfolio (funded with a nice salary!).
It’s more hard work than necessarily “smart”. Trading, (for a really good trader) might earn $100 a month. An “investor” might average $60 a month. Both would take time & lot’s of work.
put it all in prxi and you will tripple your money in 1 yr.
if you dont know any terminology you are screwed as unexperienced investors get owned. i invest for the long term, i have tried trading in the past but all ive really done over time is break even or lose slightly, i just dont think its a winning strategy (although a lot of the institutuional investors make money doing it). i think the returns from day trading are overstated and you can do just as well investing for the long term if you know what you are doing.
-johnny wadd