What can be a realistic expectation of returns from trading?



I have been trying a number of strategies for a last few months. I backtest the data and i get some returns. But the most basic question still remains - What can be a realistic expectation of returns from trading?

For example- If i have a capital of Rs 1 Lakh, then how much return should i expect if i do intraday trading. Quite obviously, talking of daily returns is pointless so in what timeframe should we judge the returns - annually or biannually or any other time frame ??


Minimum 3 per month.


Intraday Trading - 10 % per Month

Investing - 2 % per Month

Calculate Annually.


if you’re a beginner than expect to be losing half of your equity within a month.

back testing results are pointless when you will have to act in the heat of the movement or when things don’t go your way and many unforeseen problems

if you’re starting out in stock market just buy 3 4 shares of midcap stocks & trade for a month or two and than see what percentage you made than you will have a realistic idea what kind of returns you can make

if only someone would have given me this advise it would have saved me a lot of trouble.


Realistic is 100% loss over a period of time hehehe

Ideal returns is what Vamsi mentioned above


If you are a Professional Intraday trader then expect 7 to 10 % per month. You can assess your returns on quarterly basis. You can judge your returns after a set of 20 trades also (I mean every 20 trades).


If totally new then expect 50% - 100% loss within a month for a starting capital of 1 L
If good working knowledge of charts and how to create a trading setup then probably 1 or 2% month if you don’t engage into reckless trading, otherwise expect 100% within a month

with 1 Lac capital the absolute gains will be minuscule and there will be propensity to take high leverage disregarding safe position sizing. That’s another risk