Wednesday, November 24, 2004

Scorecard Methodology

I'm always afraid I'm just playing games with numbers and honestly sometimes I do (I'm really not up three pounds because I'm weighing in the afternoon ...)

Posts titled Scorecard will be as the previous Scorecard post in this blog. What I had and when I had it. I'm going to publish a Scorecard every Friday and every time I actually sell a stock.

But I also want to do a quarterly assessment to evaluate my trading success (or lack thereof.) There is no sense continuing this if my trades aren't successful over time.

I decided for these quarterly assessments that I will start with the January 1 beginning balance and throw out any deposits I have made for the time period I'm evaluating. By comparing the ending balance minus deposits I have made, I'll be able to compute the percent increase or decrease.

I am not throwing out inactivity fees charged to my account or commissions. These are the cost of doing business. Inactivity fees are charged when a balance falls below $2000 or less than 4 trades are made per quarter. I am not going to be forced into trading when I feel like the market is down and I need to face these fees.

So my first assessment of this type (and I'll repeat it at the end of each quarter):
Beginning balance: 1227.67
Ending balance (less deposits): 1437.09 (as of today's market rate at closing since I do hold a position)
I'm up 17.05% for the year.

I don't know about you but I'm psyched!

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