How do you track and measure your trading performance？ What is the best tool to track trade performance？ And, how do you evaluate how good or successful you are as a trader？
Trading performance, tracking and monitoring the performance of our trading practices, and how to improve trade performance is one of the top topics in the world of financial trading. Thats because only through tracking and monitoring our trading activity can we improve our trading performance and increase our profits.
So, what is Trading Performance？
Trading performance refers to the traders activity, that has to be measured to evaluate how successful the aggregate trading activity is. Measuring forex trading performance can simply be done through calculating return on capital. For instance, if a trader makes a $100 profit from a $500 trading account, that means the total return rate is 20%. Nevertheless, focusing only on profits is not the ideal way to evaluate how successful your trading is. It can be a misleading approach if you want to improve how you trade. Instead, we will outline some popular easy yet effective ways to measure your trading performance.
How to Measure Your Trading Performance？
Most traders will simply answer this question by stating that how much money they are making measures their performance. Of course, making money is the key objective of forex trading, or any investment out there. But, does the quantity of money made alone sufficiently reflect how good or bad we are at trading？ Actually, it cant be the only factor we count on when it comes to evaluating the trading activity. These numbers will not pinpoint the weakness in our trading practices.
One best way to evaluate trading performance is to track how we are performing in different trading aspects, find out our strengths, and most importantly get to know our weaknesses to improve them. That is how we can make changes in our trading performance and profitability.
Trading performance reports provide you with insights from your trading history with key performance statistics. InMetatrader 4, MT4, you can extract performance reports at any time by going to the “Account History” tab within your terminal. You will have to choose the time period you want to track. Then, you can click on “Save as Detailed Report”.
Ways to Measure your Trading Performance
Winning vs Losing Trades Statistics
The success rate of your trades is a very indicative number when it comes to performance tracking. Generally, traders want to win more often than they lose, but what really matters is how balanced your average win and loss ratio is.
Read more on Measure Trading Performanceto learn more ways of measuring your trading performance
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