September 9, 2017

How much do good investors or traders earn?

Typically around 15-20% per annum over a 20 year period. 

This is excellent in my opinion.

Of course, you will always meet people who say they earn nothing less than 10-20% in a month but can they replicate their success consistently?

You can always invest few lakhs and get 10% in a month. But it is difficult to repeat the performance over a bigger time frame.


Say you have INR 100,000/- and are smart enough to earn 10% every month (after expenses). With reinvestment, your capital will become Rs.304 lakhs in 5 years and Rs. 92,709 lakhs or 927 crores in 10 years.

After that? How do manage? How you invest 1000 crores in the stock market? Forget 10% per month, you will be happy to get 10% pa or anything above the bank rate.

Remember ...  As the capital increases, you just cannot invest the increasingly larger capital without causing huge disruptions in the market.

So there is no choice but to be happy with lower returns.

On a different note, for most people it is very difficult to protect their capital... forget the returns.

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