Chapter 18: Warning! Measure or go broke
In this chapter, you will learn that:
• Measuring your performance is an essential component of effective trading. The best traders track their key performance indicators each month. The rest go broke.
• One of the most important measurements to conduct on a monthly basis is charting your equity curve. This is one of the purest ways to show whether you are making a profit or a loss over time.
• Other more advanced measurements involve calculating your expectancy. You will need at least three to six months of trading results to complete this calculation with any reliability.
Now, I know that you probably expect me to tell you in this chapter that if you’re not making 60 per cent per annum, then you’re ...