Calculating Profits and Losses
Back in the 1920’s, an economist named Frank Knight distinguished between risk and uncertainty.  With risk, you should tame randomness with probabilities.

 With uncertainty, you don’t even have knowledge of probabilities.

DO YOU….

  • Have economical brokerage commissions and calculate them always into your net buys/sells?
  • Analyze how many trades you have in a month, and how many are profitable?
  • Know your actual net/net return?
  • Track what % are winners vs. losers?
  • Know when you are making money, WHY?  What did you do right?
  • Know when you are losing money, WHY?  What went wrong?  Where did you perhaps not follow rules?
  • When you lose money, how much do you lose proportionately to how much you gain?
  • Track how long you hold positions?  Are your profits best with one day or longer holds?