alohamart - sure you are absolutely right about the limits set by the 'power of compounding'. One obvious reason that will stop exponential growth is that at some stage your trading will perturb in a significant way the price of the underlying you are trading. Say if you trade MSFT with average trading volume per minute of $4 million, you won't get your $1 million order immediately executed at ask/bid price. And sure nobody will ever get trillions <gg>. I can imagine that something about $50,000 - $100,000 could be the limit of the day trading capital, where 2-3% return is possible (??).
On the other hand, since all great traders in the world have hundreds of millions or billions, they should be happy with the return of 30-50% per year like Buffett or Zeev <g>.
What other problems to have these kinds of returns with more capital do you see?
George J.
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