Originally Posted by
Daytr
And here is where you get it so wrong from sheer ignorance.
I know plenty of traders that at least do double digit & much higher returns most years. They might have the odd poor year but on average they make very high returns.
On averafe bank prop traders double the funds allocated if not more.
But a new year begins, the P&L is wiped and they start again, as the profits are swept up into the bank's accounts, costs & taxes & dividends etc.
Typically PA traders they are living off the profits they make, so it's not compounded, in fact as that's their livelihood and their capital in one basket, they typically diversify it out into living expenses, could be buying a holiday home, overseas holidays, a boat or investments away from.the market to diversify their risk.
To deny that there are traders who don't make those sort of returns, just displays naivety.