I simply determined the point at which they both have the same longer-term outcome....A trader needs to make 33% per year, to match the returns of a 20% per year investment. If the trader makes more than this, they are ahead, if they make less, they are behind. The chart with equal returns (20% p.a.) was simply to illustrate that if you switch to trading and don't actually make better returns p.a. then you go backwards, relatively, significantly. Simple. Sure, a trader may "think" they'll make a far greater return, but this just shows HOW MUCH that greater return needs to be, to end up in a better position over time. Simple.
AGY Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
