Investing Performance Analysis
In investing there are a number of important basic statistics that you need to record in order to effectively analyse your investment decisions.
- % Winning Trades – The % of winning trades as a proportion of total trades made
- Average $ Win Per Trade – The average win per successful trade
- Equity Line – In this context your “Equity” is the total amount of capital that you have placed in your investment fund at the start of your investing career. The Equity Line traces the growth (or otherwise!) of your Equity over time as a result of your investment decisions. Ideally your equity line should exclude the effect of adding or removing money from your investment capital.
You will find that many trading software programs produce some of the more basic statistics on your investing performance. However, often the best solution is to become familiar with the spreadsheet (Microsoft Excel, OpenOffice Calc, Google Docs) – which will provide you with the power and flexibility to analyse your investing performance in the most appropriate way for both the market(s) you trade and your investing style.
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