Personal Finance (7): Realistically, What’s the Yield Rate for Top Traders?

For many beginners  who come to invest/trade in the stock market, they don’t have a realistic idea of how many percent they might gain over a year.  For years, from the trader library and forums, I figured out that the top number was around 28-35%/year.  And, recently, I discovered that these numbers are way too low for benchmarking at all…  and, that could set an invisible barrier of limit in traders mind.

1) Breaking Through from the Limiting Beliefs:

Here is just a short story of how imaginary barrier can limit people performance and may spark some inspiration in the mind…

* The 4 minutes Barrier

Just like once people thought that the world was flat.  Before 6 May 1954, athletes had never able to run a mile under 4 minutes, and some “experts” at the time even commented that it was physically impossible for a human to do so, or the heart would explode under the pressure to run a mile in under 4 minutes.

Roger Bannister was medical students at that time, not even a professional runner, believed it could be done.  He prepared himself with training and he became the first person to ever run a sub four-minute mile (3min 59.6sec) on 6 May 1954.

More interestingly, 56 days after Roger Bannisters breakthrough, John Landy ran the four minute mile in 3 minutes and 57.9 seconds in Finland. Later Bannister and Landy raced in the Mile of the Century where Bannister won in 3 minutes and 58.8 seconds.

As for today, it is no more any surprise for high school athletes to run a mile under 4 minutes, for that mental barrier had been gone.

ONLY after a person breakthrough from his own limiting beliefs, he can then sail into uncharted waters and has experiences he never had before.

2)      Setting the Right Benchmark or Higher

Recently, I have come to know of an old trader who wrote and trade his own system for 30 years and only work for himself.  He does not sell his system or even signals for trade.

On the other hand, he joins some forums and professional groups to share some valueable views and ideas…  He also presents his research paper freely for others who may interest to read.

For those who may get the ideas from his paper would know that his system is for REAL, and not fantasy.

If you are interested to get into the financial market some day, say in the future.  Then it is strongly recommended that, take a look at his website… His papers and his simulation results.

http://alphapowertrading.com/

These are some of the back test results with over 100% return a year:->
On Turtle system:

http://alphapowertrading.com/index.php/tests/turletests/turtles-test-v32-improved
On Modified Jesse Livermore System:

http://alphapowertrading.com/index.php/tests/livermorechallenge/livermorechallenge3rdact

(with permission to post as reference)

ONLY when there is a good Benchmark, then one can know what kind of aim he should set…

OF COURSE, the market cannot give profits from air, when more and more people are aware and able to use such strategies and tactics, the profits would drop according to number of participants are able to develop such systems.  

Many “Conventional Wisdoms”, such as ship must be built by wood in order to be able to float, no machine can fly, and later believe that plane cannot break the sound speed barrier, etc…  are now proven to be wrong ideas that limiting people imagination...

 

"One person with a belief is greater than a force

of ninety-nine who have only interests."
-unknown