Brian McAvoy from Inside Out Trading argues traders should target at least 6% monthly returns, not annual percentages. Most traders underestimate what they should be making and set their expectations too low.
This Brian McAvoy with Inside Out Trading. I don't know what we need to talk about, which is one of my favorite topics when it comes to trading, because everybody's got. Most. Everybody's got a pretty strong opinion about it. But it practically. I was talking with this guy the other day, and he's. Man, he was just worked up and he's like, man, this guy was telling me the other day, So I make 10% a year on my trading. You know, that's doing good. I just, I don't buy that. But then I got to think about it, so I haven't been able to do that. So what is reasonable number? And really, it's amazing. I find it amazing because sometimes people get pretty heated about it. I remember years ago I was on this forum forex form, and I'm going back and forth with a couple of different people, and they're both center saying, oh, if you're making more than 1% a month with your trading, you're lying. And I'm like, oh, my God, if you're not making 1% a month, what are you living on? That's like zero margin. How can you go that thin? Besides, the thing is, in any business, any business, really, you want to be making 6% or better. I mean, that's like an absolute minimum. That's if you're a great big company and capital, intense, all that kind of stuff, 6% is a minimum. If you're not making 6% a month, my God, what are you. That's called razor thin margins. I mean, you look at some companies like Facebook, they got like a 42 margin. It's huge. And this. And with trading, of course, we're not working on margin because we're not selling stuff per se, not products and services like other businesses. We're working off ROI on our account. But even with that, if you're not making 5 or 6%, you need to fix that or figure out something else because there's so many other pursuits where you can make more. And if your primary thing is that you're doing this to make money, 6% really should be a target to shoot for. Minimum per month, not per year. Six percent a year is like financial planner kind of speak. Where I got a mutual fund over here, 7% last year, we killed it. It's like, no, if you're trading, if you're actively trading and you're putting your time into it, you should be making like 6 to 10% a month. There are some prop firms that require you to be making 10% a month. And the thing is with trading, here's one of the cool things about it, and I find it such a cool topic. Some guys even in the trading space say, hey, if you're making 10, 15.
