Short clip from Kardec Trader advising traders to evaluate performance by percentage gains and R-multiple rather than raw dollar profits. Emphasizes that identical percentage returns look different in dollar terms depending on account size and warns against judging profitability solely by dollar gains on small accounts.
Instead of looking at your dollar gains of how much you're making on a dollar by dollar basis, look at it from percent gains or look at it from our multiple point of view. How should I look at my trades from a risk perspective or a percentage view? Because think about it. You can make 10% on $1,000. That's $100, right? Doesn't sound a lot on a thousand dollar account. Now imagine you make 10% on a hundred thousand dollar account. Now you made $10,000. Same percentage, just different account sizes. But once again.
Don'T say I'm not profitable because I have a smaller account. No, focus on the percentage gains and focus on the R multiple instead of the dollar value.
