The use of tools in your trading can greatly improve performance and output. Among the commonly used tools for trading, today is the gain-loss percentage calculator. In this article, we’ll share with you a quick info and guide on how to use this tool for more convenient trading on eToro and other trading platforms.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 67% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
What is a gain-loss percentage calculator?
As the name suggests, a gain-loss percentage calculator computes the percentage of your win or loss. It provides you with an estimate of your current balance after a win or loss. While it shows a percentage of how much your balance has increased after a win, it also shows how much percentage you need to put in your balance to achieve breakeven in case of losses.
You can enter details in any order to fulfill your inquiries. Say you want to find out your % win or loss after a trade, or want to know the exact amount of what you’ve lost or won – simply enter your balance before trade and balance after the trade. As you fill out the desired fields in the tool, it will immediately display the results.
Why is it important?
The first importance of using the gain-loss percentage calculator is that it helps you track your wins and losses as well as the changes in your current balance. Knowing all these things will help you create a better plan and strategy for your trades. It will help minimize losses as you become more aware of how much you have won, how much you need to risk, or if it is time to exit or enter a trade.
Another importance of this tool is that it allows you to create better allocation strategies for your specific stocks. As a trader, you need to remember that the allocation of funds or positions for a specific stock is also important. Not all stocks are the same – some stocks need more attention, a different approach, and other stocks need more funds. With this calculator, you’ll be able to have a good estimate of how much you are investing or allocating in a specific stock.
As you are able to monitor your losses and gains, you will also be able to make a sound decision regarding your exit and entry points in a trade. Some strategies need to fulfill certain percentages prior to entering or exiting a trade. With this tool, you become more confident when it comes to exits and entries.
Tracking your wins or losses through this tool will also serve as a great trading practice because it enables you to be more cautious and mindful of your actions. You can make better decisions such as adding more to your balance to maintain a certain percentage, investing in other stocks, stock allocations, and others.
Also, many traders consider percentages as significant indicators of trend reversals and price actions. Keeping track of the changes in price percentage enables them to make sound exits and entries on a trade.
A step-by-step guide to using the gain-loss calculator on eToro
Using this tool is actually easy and straightforward, and you only need to enter a few details. These details include the existing balance or the starting balance before the trade and the amount won or lost.
After entering the starting balance, you need to choose the result of your trade – whether it’s a loss or a win. Simply click the box to choose the corresponding result. After which, simply enter the amount lost or won on the next box. Immediately, the tool will display the percentage lost or won, the current balance based on that result, and a percentage of how much you can afford to lose, and how much you need to win in order to get your balance back to starting balance.
As an example, let’s take the stock MSFT (Microsoft) to demonstrate the use of this tool.
Let’s say you’ve bought a stock at the price of 209.72 and won on the next candle resulting in 213.39. To calculate your percent win, simply enter these details on the calculator in the space provided.
In this result, it displays a $3.67 profit and a 1.7% leverage on the account before it can get back to the starting balance.
Just like any other tool in trading, this gain-loss percentage calculator works more effectively when combined with indicators as well as other strategies in trading. Executing a trading plan or strategy using this tool greatly reduces the risks of losses and allows you to see the movement of prices in a bigger picture.
So, whether you’re a beginner or a trading expert, knowing your gain-loss percentages really comes in handy. With this tool, you’ll find more confidence in your every action and decision toward a trade.
To see the importance of this tool, and to improve how you manage your gains and losses, sign up for a Toro demo account. It’s free and easy to sign up. But note that 75% of retail investor accounts lose money when trading CFDs!
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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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