Just as calculating trading profits is an important skill to possess so is calculating the "return on investment". It's important to know what your return on investment is as it is a performance measure which let you know how you and your trading systems are doing. This performance measure also … [Read more...]

One of the more basic, but very important skills to learn in trading is that of calculating trading profits and losses. Below is a simple formula for the calculation of trading profit/loss: Method 1 – (exit price - entry price) x quantity x direction = profit/loss - in this example "direction" … [Read more...]