A lot of people jump to trading that they can make their money 10x to 100x in some time after watching YouTube videos, or Instagram posts or after following some random finfluencers. But the problem is most of the people lose their money in this process. This is because they don't keep the number realistic. Also because of the tips they don't do their own research.
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The problem is market will never go up always, it runs in a cycle, going up, coming down and then going up, like the bear and bull phase. The money made in the bull phase should not be expected in the bear phase and the money lost in the bear phase should not be compared with the bull phase. Now since we are in the bull phase in crypto, you will see a lot of coins giving 100% returns but that is not true always. I know some coins can become 10x in their value if you hols good coins, but again we should constantly book profits so that we can again take positions when required.
So the realistic number is that you can have anywhere between 1 to 3% returns on your full capital if you are trading. That means 12% to 36% annually. If you are getting more than that, then might be overall market sentiments are bull or you are a very good trader. But as an average trader, I feel this number is quite good. And even if we get say 20% that means our money will get doubled in 3.5 years and this is true even if you have 100K.
When I started the ETF strategy, my realistic number was getting anywhere between 15% to 20% so that I could beat the Mutual Funds returns by 1 to 2%. If I can beat that number then I will use the ETF strategy mostly.
If you are a trader and if you cannot beat the index then you might be doing something wrong. Mostly to gain unrealistic gain people jump to Futures & Options without looking at the risk involved and lose most of their money.
Also if one of your trades has given you 5x returns, it doesn't mean that your whole portfolio will become 5x because mostly we don't invest all our capital in one trade. And the next is we have to cut down the losses as much as possible. If a stock has fallen 50% it requires a 100% gain from that price so that you will be break even. Also if you continue to average it out, then it's like catching a falling knife.
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