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BUT DID YOU MAKE MONEY? EVALUATING PERFORMANCE

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BUT DID YOU MAKE MONEY? EVALUATING PERFORMANCE Any one trade involves a lot of variables: price bought, price sold, com missions charged, volume traded, and amount of leverage used. And  each of these affects your overall performance. In the heat of a trading day, it  can be hard to juggle all these factors and determine just how well you did or  did not do. Performance calculation starts before you trade. You want to test your strate gies and see if they work for you, which requires backtesting and paper trad ing. You want to keep track of your trades in real time with the help of a  trading diary. And then, on a periodic basis, you should  review your progress to see how much money you are making and whether  you need to change your strategy. Before You Trade: Testing Your System Performance measurement starts before the trading does. That’s because  you want to figure out how you will trade before you start betting real money. S ome of the different securities th