I use a different rate: "Return on Investment per day"
The intuitive reason why I chose that number: "It's a Jungle out there; leaving my money at the mercy of market manipulation must be worth it, and I want the best and safest return over the shortest period of time."
I once asked my mentor about reasonable returns in the market.
He replied that it used to be 100%PA when he started, but now around 40%.
So now I need to make 41.5% twice, compounded, to get 100%.
Then I hear from Rene Rivkin:
If your shares haven't done what you want inside six weeks, you've got it wrong.
So I put the two ideas together.
I like to get 41.5% after brokerage, inside six weeks.
Then reinvest and try to get the same again.
Twice in one year, not impossible!
And if I can only manage 19% at a time,
I need four cycles per year to double.
Ahh. The power of compounding!!