What's a reasonable expected profit on day trading with usd 50,000 initial outlay?
How much profit can I expect in the Indian day trading market with initial outlay of USD 50,000 to be considered as a moderately successful day trader?
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I'll assume you're asking from the perspective of a new hobbyist trader.
For a hobbyist who's new to trading, moderately successful means you're keeping most of your initial capital while gaining a lot of experience. And if they're making money, moderately successful means not letting it get to their head and accepting that any exceptionally large profits (20%+) are not only due to skill but to a large part due to luck. As hobbyist with a small amount of capital, the value you gain is experience, not money.
If we're talking from the perspective of a professional trader:
With 50.000 USD you aren't a moderately successful professional trader.
You are moderately successful if you can make a decent living off of it,
while not working yourself half to death.
If you wan to be 'moderately successful', you need to beat the market (otherwise, buying an index fund and sitting on it all year beats you, which I would consider unsuccessful). That means, you need to beat about 10% per year in long-term average.
If you divide 10% per year down to a day, you get 0.026%/day (considering compound interest), which is about per day [net - after subtracting cost] when using 000.
Note that this is a long term average, as in reality there are good and bad days, so even if you are good, there are days with a hundred times this is losses.
The are many articles on the net that indicate that anywhere from 80% to 95% of day traders lose money and a large percentage blow out their account in their first year of day trading. Here's one of many articles on the subject:
www.tradeciety.com/24-statistics-why-most-traders-lose-money/
Breaking even would be an appropriate day trading goal in your first few years. After that, consistently beating the long term market average would mean that you are a moderately successful day trader.
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