the 10%pm dream

many of my friends in mudraa and beyond
ask me if there is a sure shot way
to get 5-10% per month return
a trader can expect?

to this
i used to reply
that while there are a few ways
which can give 60% return per annum
(which, in effect, means 5% per month)

and while there are a few ways
which can give more than that
over a period of a few years
especially if one can spot multi-baggers,

there is a severe shortage of methods
which can guarantee 10% return per month
consistently
month after month

every month!

reasons are four fold.

one, markets are sometimes trending
and mostly rangebound.

second, nobody can predict when the trend will shoot start.
and by the time the masses come to know
it is already half the way down.

third, nobody knows how far and for how long
the trend will continue.
this makes it almost impossible for anyone
to milk the rally more than a small portion.

fourth, very very small pecentage of traders
have got the technique, mindset, discipline, concentration and money
to squeeze good profit consistently.

so, while it is not impossible to consistently achieve good returns from trading
(mind you, i am not talking about investing)
it is a rare phenomenon.

a new trader should not run after 10%pm dream
and rather concentrate on learning to do ballet with the market
whatever returns he or she gets initially

otherwise, it will just be a case of
2 steps froward and 3 (if not more) steps back