Monday, September 13, 2010

Simple End of Day Stats ??

Trader Quest ~ Other than P&L, what are some simple end of the day stats that will give me a true sense of how I am performing?

Plot CourseWe talked in an earlier blog about a "perfect trade" definition and tracking. That is one stat, the second is how many trade set-ups were available in the market while you were trading and how many did you actually trade. These two stats will provide you with a simple measure the will help you gauge the quest "Did I see the opportunities today and how did I execute?" If you focus solely on P&L you may think one way, but these two measures can help paint a fuller picture of a days actions.

Ride Wave ~ When traders first come to us, we rarely focus our end of the day dialogues on Profit and Loss. A trader who may have made $20,000 may have actually traded much more poorly than on a day when she lost $1,000. By measuring the perfect trades, we can see what composition went into $20k and $1k. The $20k day perhaps had only 5 out of 20 perfect trades, where the $1k had 13 for 14. You may say, give me the cash, but we’ve heard from other wise market sages to trade the trade well and manage your risk. In fact on the $20k day the trader missed another $15k that was right there for the taking. The other reason that we like these stats is it gives the trader the opportunity to look for and review these trades and trade set-ups for deeper insights and clues on where and how to improve. Trading is about adapting to the market flow. By giving yourself daily feedback and uncovering precise areas of where to search for new learning, a trader can refine skills and grow more profits.

~ Keep Curious, Coach Mark

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