Trading is not just investing and waiting for the result. The market fluctuations can significantly affect the stock prices and movements. It means traders must keep monitoring the market and how their particular stocks are performing. This regular monitoring keeps the traders informed about the potential for profit and loss and enables them to change or modify their strategy depending on the latest developments.

Basically, traders must know when to enter the market and when to exit, how to ride the bearish and bullish markets, and regular monitoring is the key to that.

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Monitor Trading and Adjusting Strategy in Real-Time

With the world shifting to digital services and technical advancement on the rise, monitoring trading in real-time is as easy as scrolling on social media platforms. Here are some common ways to monitor your trades in real-time:

Use Real-Time Market Data

Monitor the latest market data, such as the price of shares, volume, market reports, and so on, online. Having easy access to such data, the traders are able to make an informed decision based on current market circumstances rather than outdated information. Compared to historic data, helpful to frame the strategy for trade, real-time data is instrumental in order to act instantly based on price actions and unexpected market developments.

Technical indicators rely on real-time data to provide appropriate signals. Traders have an easy time spotting opportunities or potential threats and changing their positions by constantly monitoring this information.

Set up Alerts and Notifications

You can rely on alarms and notifications to monitor and adjust your trading strategies. Rather than being glued to the screens all the time, waiting for any movement, you can just turn on the alarm and notification on price movements or any other specific market conditions. When there are any changes, you will get notified automatically, or the alarm will sound, and you can then go ahead and check. Notifications and alarm systems are features that enable traders to keep themselves informed about possible trading opportunities and market movements without having to keep checking all the time.

As the market is evolving and you notice activity in the stock price, you may also adjust your strategy to adapt to the changes in the best way.

Analyse Trade Performance Metrics

There are multiple trading metrics, and each plays an essential role in trading strategies. An understanding of these metrics will help traders in many ways, from studying trading indicators to refining stock signals:

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Win Rate

The win rate indicates the percentage of trades that end in profit. For instance, if 70 of your 100 trades end in profit, the win rate is 60%. If the average loss per trade is greater than the average profit, there is a chance of a loss in future trades. But a higher win rate doesn’t always mean wins in all future trades.

Risk-Reward Ratio

This risk-reward ratio can measure the expected profit against each rupee risked. Suppose the risk on a trade is ₹500, and the potential profit is ₹1000. The risk-reward rate is 2:1.

While the win rate informs you of how frequently your trades lead to profit, it does not consider the magnitude of those profits or losses. The risk-reward ratio accounts for the frequency of wins along with the profit from each trade. Traders can have a more accurate understanding of their total profitability and risk exposure by pairing both figures. This way, they can make more informed decisions and adjust strategies accordingly.

Expected Value (EV) and Profitability

Expected Value evaluates the profitability of the trading approach. It takes both the win rate and the volume of the profit and loss into account. A positive expected value is an indicator of a profitable strategy (over time). On the contrary, a negative expected volume calls for strategy adjustment, be it drafting better risk management or refining the trading signals.

Monitor and Adjust Your Trading Strategy in Real-Time with Indiabulls Securities

With Indiabulls Securities, traders can monitor their trades, market conditions, and price movements without any hassle. Visit our website or download our mobile app and keep a close tab on trading. We have real-time stock quotes and market updates. Use our real-time price feeds and advanced tools to determine patterns, trends, and probable entry or exit points. Turn on the alarm and notification for automatic updates.

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FAQs

1. Is it necessary to track the trading metrics?

Trading metrics can help traders in multiple ways, including:

• Identifying the trading strategy’s strengths and weaknesses
• Optimising trading signals for improved accuracy
• Improving capital allocation and risk management
• Enhancing long-term profitability chances

2. How do you get the risk percentage?

You can use this easy formula to get the risk percentage - (Amount at Risk / Trading Capital) × 100.

3. How do you compute the win rate?

Divide the number of wins in trades by the number of trades and then multiply by 100.

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Indiabulls Securities Limited (formerly Dhani Stocks Limited) is a Mutual Fund Distributor registered with ‘Association of Mutual Fund of India’ (AMFI) vide ARN number ARN-160411. Corporate Identification Number: U74999DL2003PLC122874; Registered office address: 1/1E, First Floor, East Patel Nagar, New Delhi - 110008. Tel.: 011-41052775, Fax: 011-42137986.; Correspondence office address: Plot no. 108, 5th Floor, IT Park, Udyog Vihar, Phase - I, Gurugram - 122016, Haryana. Tel: 022-61446300. Email: helpdesk@dhani.com