Second Key: Methods for Evaluating Investment Performance

Hello, this is the administrator Nikkei OP Uribou.

Thank you very much for visiting this blog. I would like to provide information that is helpful to everyone, so please give your support.

Well, the theme this time isHow to evaluate investment performance.

It is very important for investors to evaluate for themselves whether their investments have gone well or have not been particularly efficient.

Because it allows an objective judgment of whether one's asset management skills are improving or stagnating.

Whether others made more money is irrelevant. It is a tool for one's own growth and success.

For that, clear rules are necessary. And it would be nice if they can be judged by numbers.

The administrator adopts the following evaluation method.

1) Manage on a monthly basis.

To make management easier, set the end of the month on the Friday of the monthly SQ, not the last day of the month. This is because I believe it is effective to think in terms of monthly periods when determining investment policy.

2) Evaluate by investment return.

In option selling strategies, the more available margin, the higher the potential for profit. If you invest with 10 million yen in margin versus 100 million yen, it is obvious that the absolute amount of profit will be larger with 100 million yen.

In other words, evaluating by absolute profit or loss does not allow you to correctly judge your own skill.



Therefore, this month I calculate investment return with the denominator as the maximum margin available. Even if only 5 million yen of the 10 million won is used, the denominator is 10 million yen.

The numerator is the realized profit after fees and taxes (you may also consider unrealized gains).

Example) Prepare 10 million yen as the maximum margin, actually use 5 million yen, and realize a 300,000 yen profit.

Monthly return is 30 ÷ 1000 = 3.0%.

At first, even 1% might be sufficient. It is much more important to continue a strategy that avoids losses rather than forcing a win.

If the goal is 11 wins and 1 draw, simple calculation yields 11% annually, which is far more efficient than savings.




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Note) The above is my personal view and is intended solely to improve financial literacy. Therefore, it was not created for investment solicitation. The final decision on actual investments is at your own risk.