When y'all intend of procedure improvements that convey revolutionized the retail manufacture (inventory management, for example); shipping (delivery systems for bundle carriers); in addition to manufacturing, all convey begun alongside rigorous measurement. Once y'all create to mensurate outcomes, y'all construct an objective foundation from which y'all tin uncovering improvements in addition to shortcomings.
Many interesting questions follow from the elementary human activity of keeping score alongside your profits in addition to losses:
* Under what marketplace weather condition practise I tend to brand money? Lose money?
* Do I tend to brand coin or lose coin trading alongside longer or shorter belongings times?
* Do I tend to brand coin when I'm taking to a greater extent than conduct chances or less risk?
* Do I tend to brand coin or laissez passer on it dorsum later a winning streak? Influenza A virus subtype H5N1 losing streak?
* Which markets or types of trades tend to brand in addition to lose me money?
Each of these questions tin Pb to rattling useful improvements inwards trading processes. But none are possible without measuring your results.
Check out this valuable postal service from Abnormal Returns on functioning measurement. Tadas emphasizes the importance of comparison your results to an appropriate benchmark. For instance, if y'all are seeking superior risk-adjusted returns, your relevant metrics volition last unlike than if y'all are only trying to shell the marketplace averages. It's of import to proceed score, but it's peculiarly of import to rail the correct scores.
Further Reading: Greatness inwards Life in addition to Trading
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