Account percentages

[brewski1984]

Hi,

I've been trying to work out something and I'm not sure which is right regarding the percentage of account increases/decreases when account size changes. I increased my account but i can't work out where I stand! I'm only using a very small account to start with as I'm still an idiot so:

In may I started with £200 and finished with around £216, an 8% increase.
In June I doubled to a £400 account and still risked 2% per trade, currently I'm on around £432, so an 8% increase on the £400 account but a 4% increase from the £416 I started with to the £432 I'm on now.

Where does this leave me? If it's an 8% total account increase then I've made nothing in June? Or is it just expressed as an average of 4% a month? Might be a stupid question but still!

Thanks,

Brew.

 

[wackypete2]

Sounds like a riddle!
Seriously, I think you are getting too wrapped up in numbers. If you are looking month to month then June would be 416 to 432 = ~ 3.85% increase.
Trying to determine %'s when adding or subtracting money from your account gets into deeper calculations.

So, 16 each month but it's 8% in May and 4% in June. It just looks like you made less.

Of course big corporations like to annualize everything and project out what your precentage would be if you continued over a 12 month period. Not much use to the small trader though.

Stick to trying to be profitable each month and the numbers will work themselves out!

Good Job!

Peter

 

[brewski1984]

I do nothing but think of numbers all day! I was trying to work that out in my head for a good few hours yesterday, I think I must have an OCD or something.

Thanks Pete you're a legend.