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Hoots : 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 - freshhoot.com

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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.


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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.


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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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