10 Ways to Measure Trading Success; Traders Both Green and Experienced Have Numerous Questions about Trading Success: How Is It Defined? How Do You Measure It? When Can You Expect It? Here Are Some Answers
Wyckoff, Jim, Futures (Cedar Falls, IA)
At some point in nearly everyone's trading timeline, they wonder how their trading successes (or failures) compare with those of other traders. Wondering just how well you stack up to others in the industry is a natural curiosity and a human psychological tendency. However, actually knowing the winning and losing tendencies of others doesn't do a lot to move you further down the road to where you want to be regarding trading success. Most traders also wonder about the success rates of the "professional" traders, the ones who make their living solely by the profits they generate from trading. I will provide you with an answer to this question at the end of this feature.
There are 10 questions all traders must ask themselves, the answers of which can help measure trading progress and success (see "Measuring success," right).
These questions should help you determine where you stand in this challenging field, so lets take them one at a time.
* What is trading success? This is a basic, but difficult, question. Most would agree that ultimate trading success is defined as being profitable, making more money than you lose. There are other secondary factors that also define success in trading, such as finding a balance between trading and other life activities. But it's being profitable at trading …
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Publication information: Article title: 10 Ways to Measure Trading Success; Traders Both Green and Experienced Have Numerous Questions about Trading Success: How Is It Defined? How Do You Measure It? When Can You Expect It? Here Are Some Answers. Contributors: Wyckoff, Jim - Author. Magazine title: Futures (Cedar Falls, IA). Volume: 34. Issue: 7 Publication date: June 2005. Page number: 40+. © 2009 Summit Business Media. COPYRIGHT 2005 Gale Group.
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