I've been trading options for about 5 years. The first 2 I lost money. I've been positive every year since. The problem is that I don't know how successful is considered successful. I grew my port enough for a down payment on a house in years 3 and 4. I started over again this year, and I doubled my small port through the first 6 months. How successful are you guys on an annual basis? What percentage are you making on your deployed capital on average each month?
Expected rate of return for successful trader
byu/zaepoo inoptions
Posted by zaepoo
2 Comments
I won’t call myself a successful options trader (options, swing trading, long term). However, my comment really boils down to what is your objective? Is this a career and primary income or secondary. Those are two totally different things. If this is your career, it has to be sustainable and enough to live your lifestyle. I cut back on my options trading this year and went to swing again because of time commitments with my profession and family.
Your question is generally misguided. Who are you measuring against and for what reason?
“I don’t know how successful is considered successful” who cares? Like nearly anything you do in life there will be plenty that are far better than you at that one thing and plenty far worse. IMO this is the wrong benchmark to be concerned with.
What I’m highlighting is you need to define success for yourself. Are you able to achieve your financial and lifestyle goals with your trading? If yes, then successful. If not, then not successful – adjustments required.
I started trading in high school in 2007 and have a 26% CAGR over that timeframe. There are lots of traders that do far better and lots that do far worse. My approached is predicated on consistent moderate performance. I won’t be at the top of the pack any one year, but I’ve had (2) negative years my first two and both less than 5%.
In the end, the race is only with yourself. Set clear goals that move you towards your financial objectives.