AboutJay Kay Expertise As a private investor for the past 40 years, I have experienced both bull and bear markets, and have lived to tell the tale. I should be able to provide you with serious, practical insights into managing stocks, bonds and mutual funds in your portfolio, along with useful information concerning most aspects of personal finance. No specific stock/bond recommendations furnished.
I am James. I am trying to find out how much percentage gain is considered a very successful trade.
A couple weeks ago, I started investing $30000 in two companies and the initial cost capital has now achieved a 56% increase.
So, I am wondering whether this is considered very good, or just good?
Thank you.
James
Answer This is a question for which there is no general answer. What you ask depends on such factors as the economic climate, the investor's "philosophy," the type of stock purchased, and the purpose of the investment (there are other factors as well). If you are familiar with the so-called risk/reward ratio, you are aware that the greater the risk an investor is willing to take, the greater his reward (gain) should be. There is no standard percentage gain (your term) considered good, or very good (also your terms). What also should be taken into account is the time the capital has been invested in order to produce those gains.
Your results over a few weeks would, in the opinion of most investors, be considered altogether satisfactory. But some investors are better termed speculators, and, upon occasion, try to double their money in a day, or less. And at the other end of the spectrum are those who feel an investment has been very good if it gains ten percent in a year.
So the best I can do by way of a concise answer to your question is: It depends.
