Copy Trading: Is an average monthly return of 4% over 6 years achievable?

Asked 4 years ago

I'm working on big plans to reach early retirement. I'm basing my calculation on the assumption that I can copy trade with a return average of 4% per month over 6 years. I currently copy about 6 PI's, and all of them are roughly in that vicinity - some higher, which I think is due to the crazy month we all were part of. Do you think an average return of 4% per month over the course of 6 years is doable?

Annual average return Income investing Dividend investing Copy trading

Andrew Moran

Wednesday, January 12, 2022

No.
While a good return on investment is about 7% per year, there is no chance that you will attain a 4% average per month over six years.
There are investment vehicles you can utilize to increase your returns, such as leveraged exchange-traded funds (ETFs) and CFDs.
Sure, there will be times when you can generate a 25% return in a month, there will be more months where you will lose 10%.
Remember, most market analysts agree that the stock market will not mirror the gains from 2020 and 2021 moving forward. So far, in 2022, the leading benchmark indexes are down several percent.
Your best bet is to buy index funds, dollar-cost average (DCA), and take a gamble on stocks that could make a big push over the coming year based on your forecasts.