What is a reasonable day trading ROI?

by Simon
(Toronto, Ontario, Canada)


I am new to this and am really just trying to learn as much about trading as I can. I recently started doing some virtual trading of US equities for practice, with a $100k account. I’ve been doing it for just over a month now (started early September), almost strictly day-trading, and have a 259.82% return so far. Like I said, I almost exclusively day-trade, other than the odd trade here and there. I only trade small cap stocks, mostly NASDAQ based. In general, I don’t trade with stocks worth more than $2 a share so I can maximize the number of shares I get (yes I realize this maximizes risk too).The largest trade I’ve made netted me just shy of $75k, so I have made a couple big trades to boost it, but in general I’ve been consistently pulling in $40k a week since I started. If it makes a difference, I’ve made most of my return on the following NASDAQ stocks: BIDZ, YRCW, SIRI and some off LVLT. I just follow their daily averages and trade accordingly (especially YRCW and SIRI as those two fluctuate fairly consistently). On the virtual trading system I use, I have moved up to rank 124 out of 50,000 in ROI %.

Anyways, my return so far seems way too good to be true, so I was looking for some feedback as to what’s going on. My one concern is that the trades go through faster on my virtual trader, and hence I am probably profiting on deals that couldn’t be made in real life? Any feedback is great!

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