Most beginners enter the stock market with the wrong expectations. Some dream of becoming rich overnight. Others set unrealistic daily income targets like ₹5,000 per day or ₹1 lakh per month—without understanding whether these goals are practical, scalable, or even safe.
The result?
They fail. Not because the stock market is impossible, but because they start with completely wrong assumptions.
This article breaks down the single biggest mistake beginners make and gives you the exact clarity you need before trading or investing. By the end, you will understand:
- The correct way to set income expectations
- What industry benchmarks truly look like
- How much money a trader or investor actually makes
- Why “percentage mindset” matters more than rupee mindset
- How most failures in the market can be avoided
- When to aim for exceptional returns
Let’s begin.
Why This Lesson Is Critical Before You Learn Trading or Investing
This is the lesson that thousands of beginners never learn. It’s the exact reason most traders lose money. Without this clarity, you will:
- Set incorrect targets
- Take unnecessary risks
- Mismanage your capital
- Burn out emotionally
- Eventually quit
But with the right benchmark, your journey becomes structured and achievable.
The Common Beginner Question: “How Much Should I Make From the Stock Market?”
Ask any beginner and you’ll typically hear two answers:
1️⃣ “As much money as possible!”
This is the unrealistic get-rich-quick mindset.
2️⃣ “I want ₹5,000 per day.”
Which translates to:
- ₹5,000 × 20 trading days = ₹1,00,000/month
- With only ₹10,000–₹20,000 capital
This expectation equals 20% returns per day, which becomes 5,000% per year.
No trader in the world achieves this, not even the legends.
This thinking leads directly to failure.
Why?
Because beginners think in absolute rupee terms, not in percentage terms.
The Correct Answer: “Meet Industry Benchmarks.”
This is the foundation of realistic stock market success.
To understand this, let’s use a simple example from cricket.
📌 Industry Benchmarks Explain Who Is “Good”
Test Cricket
A Test batsman is considered successful if his batting average is above 50.
That’s the benchmark.
T20 Cricket
A good batsman is judged by strike rate—not by total runs.
A strike rate above 120–150 is a benchmark.
Success is defined by benchmark standards—not emotions, not dreams, not random targets.
The same applies to the stock market.
There are benchmarks for:
- Trading
- Long-term investing
Let’s understand both.
📊 Industry Benchmark for Trading Returns
To know what a “good trader” earns, look at the best in the world.
Jim Simons – One of the Greatest Traders Ever
His fund generated around 70% annual returns consistently.
Meaning:
- If he deployed ₹10 lakh capital
- His profit was ₹7 lakh/year
That is the world standard for exceptional traders.
Now look at the best traders in India.
Top Indian Traders
Consistently generate 40% to 60% annual returns on their deployed capital.
Example:
- Capital = ₹10,00,000
- Expected yearly profit = ₹4,00,000–₹6,00,000
This is not luck. This is benchmark performance.
✔ So, what should YOUR target be?
40% to 60% yearly returns from your entire trading capital.
This is the realistic benchmark for a scalable trading journey.
Important note:
With small capital (₹10k–₹50k), you may earn 100%–200% yearly.
But this is not scalable when your capital becomes lakhs or crores.
Benchmarks exist only for scalable growth.
📈 Industry Benchmark for Long-Term Investing
Now let’s look at the world’s greatest investor:
Warren Buffett
His long-term portfolio has delivered around 18% CAGR annually for decades.
Next, India’s most respected long-term investor:
Rakesh Jhunjhunwala
He famously said:
- 18% yearly returns = You are a King
- 22% yearly returns = You are an Emperor
Professional PMS fund managers also deliver in the 20–30% range annually.
✔ Therefore, your ideal long-term investing benchmark is:
18–20% annual portfolio growth.
If your portfolio grows at that rate over many years, you are beating inflation, building wealth, and matching global standards.
Why Most Beginners Fail: No Benchmark, No Target
If you enter the market without knowing:
- What is a good return
- What is a realistic target
- What is scalable
- What is industry standard
You begin gambling.
Example:
Someone with ₹10,000 capital wants to earn ₹2,000/day.
That is 20% per day → 5,000% per year.
This expectation will absolutely destroy your capital.
Not having a benchmark = not having clarity
Not having clarity = guaranteed loss
Benchmarks protect you from greed, overtrading, and unrealistic expectations.
Percentage Mindset vs. Rupee Mindset
This is one of the most important lessons of the stock market.
Beginners talk like this:
- “I made ₹5,000 today.”
- “I made ₹25,000 this week.”
- “I made ₹1 lakh this month.”
This thinking is dangerous.
The correct way:
- “I made 1% of my capital today.”
- “I made 4% this month.”
- “I made 50% this year.”
Percentages reveal true performance.
Rupee values mislead.
Professional traders, fund managers, and institutions all track performance in percentages.
Start thinking like a professional.
What About Traders Who Make 200–300% Per Year?
Yes, they exist.
Yes, they are real.
Yes, they are legendary.
But they are exceptions.
Just like there are cricketers who hit:
- 400+ runs in a Test
- 200+ runs in an ODI
- Century in T20
These are rare performers—not benchmarks.
If you are a beginner, your first goal should be:
✔ Match benchmarks
✔ Build consistency
✔ Grow confidence
Only after that should you aim to become exceptional.
The Only Practical Targets You Should Aim For
Trading Benchmark
✔ 40%–60% annual returns on trading capital
Long-Term Investing Benchmark
✔ 18%–20% annual returns on portfolio value
If you meet these two targets:
- You are better than 95% of retail traders
- You are performing at the top 1% of the country
- You are building wealth sustainably
- Your performance is globally respected
- Your results are scalable as your capital grows
This is what success looks like.
Final Thoughts: The Journey Begins When Expectations Become Realistic
Success in the stock market is not about luck or magic strategies.
It’s about clarity, discipline, and realistic benchmarks.
Now that you understand:
- What targets to aim for
- What returns are realistic
- What benchmarks top traders achieve
- How percentages matter more than rupees
…your actual learning journey can begin.
From the next lesson onward, you can move into understanding:
- What the stock market really is
- How long-term investing works
- How trading strategies are built
- How futures and options operate
The real learning starts now.
Let’s learn, trade, invest, and grow together.
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