Current Events > Is betting on making a +2-4% monthly stock trade unrealistic?

(+) Yeah! (+)

you wouldn't even need to make it in one trade

.75% here and there

seems doable
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That sounds pretty safe to me tbh, based on my nonexistent knowledge of investing

Are you talking like day trading or just throwing money in a fund and hoping it grows 2-4% every month?
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If that was unrealistic daytrading wouldn't be a thing tbh.
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trading, doesn't have to be daily but within a one month span you gain 2-4% o
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May as well put your money into a high interest savings account tbqh, similar rate of return and none of the risk (maybe not 4% but definitely 2-2.5%)

oh wait you said per month not per annum

nevermind please disregard my post
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Stocks? Extremely difficult for a beginner. Cryptos might be a bit easier because its more volatile
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DavidWong posted...

May as well put your money into a high interest savings account tbqh, similar rate of return and none of the risk

Lol
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DavidWong posted...

May as well put your money into a high interest savings account tbqh, similar rate of return and none of the risk (maybe not 4% but definitely 2-2.5%)

perhaps but if you could consistently expect 2% you'll definitely have some big wins at 10+% every now and then
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Considering how the best, high tech hedge funds average 30% per year, and 4% compounded monthly is around a 60% annual return, yes.
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if you know what youre doing not really but you have to be active

if youre a noob you will probably either get your ass handed to you or flatline
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You're going to get a lot of advice from people who aren't old enough to have invested outside of a boom.
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No, the taxes and brokerage fees would eat you alive.

Annihilated posted...

No, the taxes and brokerage fees would eat you alive.

this
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Brokerage fees would be 0 since I'll be in Robinhood, but taxes are another story.
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@deupd_u posted...

Considering how the best, high tech hedge funds average 30% per year, and 4% compounded monthly is around a 60% annual return, yes.

wait what?

So if I invest $100 in certain tech stocks today, I will have $130 in a year? For real?

bump

Shuto-uke posted...

@deupd_u posted...

Considering how the best, high tech hedge funds average 30% per year, and 4% compounded monthly is around a 60% annual return, yes.

wait what?

So if I invest $100 in certain tech stocks today, I will have $130 in a year? For real?

no

he means closed funds that are managed by experts who use algorithmic systems to predict market movement, which require very large sums of money to invest with them ($1m+), only average 30% per year--and that is the average of the best one in any given year, not the consistent, annual average of the best ones across the board

quite simply, the answer to the question is "yes, it is unrealistic"
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bob742omb posted...

Annihilated posted...

No, the taxes and brokerage fees would eat you alive.

this

Good call on using RH to eliminate the brokerage fee aspect, but the point on taxes is a good one.

If your goal is only 2-4%, why not just try buying and holding as opposed to trying to trade? I'm up about $870 off of a total $10k investment in the past month with just buying and holding. My picks aren't even anything super volitile or risky, and the overall market has just been doing OK recently, so I've been quite happy with this progress. I've also saved a ton of time by not having to obsess and watch my picks like a hawk day-in and day-out. I mostly just watch for dips so I can spot some possible good times to buy more.

I figure even if I have to press on through a large dip, I'll make out on taxes buy holding 1yr+ and hitting long-term cap gains as opposed to having to report any gains as ordinary income.

I just can't take a wait and see approach, gotta be active. My gut tells me I'd need clairvoyance to reasonably expect 2-4%
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I wouldn't really set investment targets like this. If after a few bad trades you're below your target, you'll end up making more risky moves in order to catch up which might end up turning even worse.

Personally I don't think it's unrealistic at all. You could easily make over 10% monthly during last year's bull market. Swing trading can work quite well if you're good at interpreting the charts even if you have limited knowledge about the company. You need time to watch the market though, something most people with a full-time job don't have

Yes, that is unrealistic. Especially for a Robinhood trader that got his confidence during an amazing bull market.

If you want to bet on a great monthly return, I suggest betting the WNBA.
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