Trading Tips: Are You Making At Least 6%? Should You Continue?
12 Jan 2023

A trader explains why 6% annual returns should be your minimum benchmark. If you're not hitting that, you should stop trading and put money in index funds instead.

A trader explains why 6% annual returns should be your minimum benchmark. If you're not hitting that, you should stop trading and put money in index funds instead.
So the question is, if you're making less than 6% ROI on your account per month with your trading, should you keep trading? So it's a really serious question. And the thing is, as far as what you can do to make money, if your primary thing with trading is to make money, you have tons of options of what you can do with your time and your money and, you know, making money. And if you're not making 6%, you might want to stop and really consider your other options, because there are a lot of options where you can be making better than 6% a month and probably easy, easier, and more reliably than with trading. Okay, so where's the 6% come from? Well, that's kind of a standard across all industries that if you're, you know, your business should be making 6%. If it's below that, then you got really thin margins. If you're above that, then you're doing well. But 6% is kind of an average across all kinds of businesses. And the thing is, if you're not making 6% with your trading, you might want to consider your options.