Friday, March 18, 2011

Try to beat the S&P 500

I sometimes get asked; 'what is a good rate of return in my portfolio?' 5%? 10 to 20%?
Many traders in the United States use the performance of the S&P 500, including myself. The Standard & Poor's 500 is a great benchmark to try to beat every day the markets in the US are active. In fact, once you can beat the S&P consistently on a month to month basis, you are pretty well setup to become a trader, or if you already are, increase your positions for higher returns. If you are new to trading, or have never traded before, try paper-trading or sign up for a stock trading simulator and try to beat the S&P. If you can, this little boost of confidence is nice, and mainly overlooked. Beating the S&P shouldn't be hard, its gains and losses aren't that substantial for your overall portfolio.
What are your best gains? And which trading vehicles did you use to accomplish that?

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.