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CHAPTER 11

Tracking Profit

and Loss Results

and More

Formulas for

Success

T

here are many reasons you’ll benefit from setting up a system to track

your profit and loss results. Initially, discipline is the primary reason.

The discipline you develop in your accounting of profit and loss re-

sults, and your other vital statistics, will transfer over into your day-to-day

success.

As you finely tune your trading machine by evaluating results, you’ll

find that it’s easier to follow your trading system rules, you will become

more disciplined overall, and there will be less doubt and more confidence

in your trading system. It’s a perpetual process, and there are an infinite

number of intangible benefits.

BENEFITS FROM MAINTAINING A

CONSISTENT RECORD KEEPING SYSTEM

There are at least ten benefits to maintaining good record keeping:

1.It adds discipline to your overall approach.

2.Confidence and awareness are increased in your trading system.

3.You can confront and correct losing behavior more quickly so you can

take action to prevent risk of ruin, plus you will reduce any tendency

for denial or avoidance of reality.

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