Being an active trader is like being a professional gambler. You win some...you lose some. The key is to win more when you win than you lose when the bet turns sour. The profit loss ratio helps keep that score.
Take the average amount you gain when you have a winning trade. Then divide that by the average loss you post when you have a stinker. The result gives you the profit/loss ratio.
Hopefully, your average gain is far outstripping your average loss. The higher the ratio, the better you're doing on that front. A small ratio, or a ratio below 1.0...and you should rethink your strategy.
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Finance: What is Trading Volume?29 Views
finance a la shmoop what is training volume training volume with a lot of
volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
seeking risk they're hopeful they're optimistic lots of volume high liquidity
low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]
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