Download the Schwab app from iTunes®Get the AppClose

Lou Mercer on Reviewing Trade Performance

Lou Mercer discusses his thoughts on reviewing trade performance.

Click to show the transcript

It's extremely important to evaluate your trading performance so you know how well you're doing. What we want to do is we want to take a look at an overall benchmark or an index and then compare how well we're doing to that benchmark or the index to see if we're outperforming or underperforming the market. What we want to avoid doing is being up, let's say, 15- or 20 percent and feeling real good about our trading when the markets are up close to 30%, if not more. Also, on those real bad years, like in 2008, when the market was down 20-something percent, if we were only down, let's say, 2- or 3 percent, even though we were down, we outperformed the market. So what a lot of clients will do is they'll compare their returns to the returns of a different benchmark, like the S&P 500, to see if they're outperforming or underperforming the market.

Schwab has tools to help you mentally prepare for trading

Learn more >

Talk trading with a Schwab specialist anytime.
Call 888-245-6864
M-F, 8:30am - 9:00pm EST

Get 500 Commission-Free Online Equity and Options Trades for Two Years

Learn More >

Important Disclosures

Past performance is no guarantee of future results.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

This discussion is provided for illustrative purposes only.


Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.