My 10% Best Days Account For 50% Of Profits
|August 7, 2018||Posted by Oddmund Grotte under daytrading, strategies|
I had a brief look at the distribution of my trading profits over the last four years. I simply ranked my net profit per day in a descending order and got the following result:
|% best days|
|% of P/L||0.32||0.53||0.70||0.83||0.96|
The number 0.32 means that the 5% best trading days make 32% of my total profits over the four year period. Also, the 25% best days make 96% of all my profits. In other words, 75% of my trading days are basically just a waste of time and I better stay in bed. Unfortunately I don’t know the result when I wake up, so I need to grind out every day no matter what.
This also emphasizes the need for discipline: you have to be at your desk every day. The minority of the days make all your money.