My Top 10% Best Trading Days Account for 50% of My Profits

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 descending order and got the following result:

	% best days
	5%	10%	15%	20%	25%
% 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.

FAQ:

– How are the best trading days defined in this analysis?

In this analysis, the best trading days are determined by ranking net profit per day in descending order. The top 5%, 10%, 15%, 20%, and 25% of these best days are identified.

– What do the percentages in the analysis results signify?

The percentages indicate the proportion of total profits generated by the specified percentage of best trading days. For instance, the top 5% of trading days contribute 32% of the total profits over the four-year period.

– What does the finding that 75% of trading days are less profitable suggest?

The analysis reveals that a significant portion of trading days (75%) does not yield substantial profits and could be considered less productive. It underscores the importance of discipline in maintaining a consistent trading routine.