Tony Iommich once wrote an article on meetpips about "How To Be the 25% a Month Man..." which would like to re-blog here... Well, Dr. Alexander Elder, psychologist, trader, and author of a number of books on trading, wrote in "Come Into My Trading Room" that the goal of a "serious amateur/semiprofessional trader" is 20% a year. The "expert" trader according to him might occasionally net a 100% return on a good year, but is most likely going to use 20% as their benchmark. Unfortunately for me, and for most other traders here, Elder's assessment of "professional" performance are not in accordance to our goals. 20% a year might do better than the stock market, but for all the trouble we're going through to learn how to trade, an extra 10% return on equity over the S&P's historical nominal average is just a joke. Any successful businessman is not afraid to think big, ask the Donald. That's exactly what we need to do, and as an example lets take a look at a real professional trader who was able to beat Alexander Elder's benchmark. Retail trader Marty "Buzzy" Schwartz had an audited average of 25% - PER MONTH! Marty Schwartz a "Market Wizard" consistently lost as a trader for 10 years. He stuck with it and went on to trade $40,000 to $20,000,000.

For those of you who haven't read Schwartz's book, "Pit Bull", is highly recommend it. I think the reason why there is a 90% failure rate amongst traders today is because the low barriers of entry have attracted a lot of uncommitted participants. So, practice, practice, practice and stick to your plan and become a "25% a Month Guy". I am sure that we have already some here in our community!

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