Can an average investor get >10 returns / annum consistently?

My answer is yes. I have averaged more than 10% returns for the last 15 years. There were years that I got 2-3 % returns but there were also years, I got more than 50% returns on my portfolio.

There are a few key factors that go towards achieving this kind of performance:

1. Get started on being financially literate. Keep up with what is happening. There are market news, market commentary, economic indicators, technical updates, stock recommendation and market updates – all for free from the Internet.
2. There is simply too much of an information overload out there. However, amongst the piles of rubbish are also many precious gems and insights. The key is to learn how to filter through the masses of information and device a clear strategy for investment with clear exit, stop loss and profit taking. I believe you can do this roughly within an hour per day during weekdays and another 4-5 hours of research during the weekends.
3. Ensure that you have a clear trading plan in which you merge fundamental insights and technical indicators to ensure that your risk is limited. Thus, when opportunities arise, you are able to ride on the upside wave. This is a skill can be acquired over time. Most people fail because of a lack of discipline.
4. The majority people dare not short the market. It is difficult but can be very profitable. My best trading performances were during periods of market downturn. Most do not know how to capitalize on the market when it is down but are just watching it in fear. It takes a little skill and experience to short the market. This is not for the fainthearted. Having said that, there are many more hedge funds adopting a shorting strategy nowadays and thus making my task more difficult now!

The world has changed. We now have all the resources that were previously available only to financial institutions, professional financial advisers and brokers, as long as you are willing to put in some effort and time. You are now able to trade at the same level playing field as any professionals with nominal commissions on the Internet. Get organized and you are on the way to being able to control your own finances.

I have been asked many times by numerous friends and relatives on how to manage your portfolio. I am in the process of designing a system where you can start your journey to manage your portfolio effectively. This is by no means a holy grail or a black box that can guarantee profit but a simple basic system with sound trading principles that will limit your risk and increase the probability of capitalizing on upside opportunities. It will equip a beginner with the adequate skills and launch them on a journey towards increasing your wealth on the long term. A common principle applies: the more effort you take to improve your skills, the more rewarding it will be.