I see different types of spreadsheets, what do YOU THINK is superior?
Two examples:
A spreadsheet that organizes items by buy-price and sell-price and considers your tax, allowing you to sort items by profitability after taxes.
A spreadsheet that organizes items into brackets of Blocks of Profit and how many units of the item to buy said block. This displays information so that you see volume of trade and amount of capital committed to that volume.
I think #2 is superior and here’s why.
In number 2, your data is organized for a target profit, with easily understood units needed to be traded to achieve that profit, allowing you to more quickly determine if your target block of profit can be met by the volume traded of that item.
In the number 1 sheet example, which is pretty standard I think for most traders, you find a profitable item, but then have to individually determine if that profit can fit the volume traded. So the sheet actually lacks a calculation, it misses a piece of data.
I think it’s crucial for trading to be able to easily determine if the desired profit can be achieved with the volume traded. That can be quickly seen in number 2 when, for instance, you learn to achieve a $10million profit on a trade, you see you must trade 1,000 units of the item, but that the daily volume is only ~25 units of that item per day.
You can easily see that you will not achieve a Profit Block of $10million in that scenario.
The number 1 sheet does not allow you to see that at all.
It’s called Actionable Intelligence, a great concept from the military.
#1 has no actionable intelligence. It’s just useless profit tables. It’s what EVERY trader demo traps new persons into, without considering that the actual skill comes from assessing which data is actionable.
