How do you track day trading profit and loss (P&L)?

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When considering their trading performance  the number one mistake novice traders make is focusing on P+L  – the amount of money they have made or lost throughout the day. But this metric measures the outcome of their trading , not how theyperformed. Just because you made money doesn’t mean you performed well and  had a good trading day, and just because you had a losing day doesn’t mean you traded badly .  Let me explain…

Back in the mid 90’s I was trading on the Liffe Floor for GH Financials. A colleague of mine Jake was trading a different contract  in a different trading pit – Euromarks (  German Interest Rate futures contract ). On one particular day Germany had announced an unexpected and sudden increase in its Money Supply causing the market to swing widely in the opposite direction it had been trending. This sudden move caught Jake and many position traders off guard and on the wrong side of the market. 

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