If one takes day trading as a profession, then it is important to keep records carefully. The trading record not only helps to define the net profit-loss but also analyzes how well your strategy works. Traders can maintain the intraday track records through Excel sheets. Today, we are going to demonstrate the steps of making a day trading profit calculator in Excel.
The Need for Calculating Profit in Day Trading
For an investor, it is necessary to calculate their profits in Day Trading as it helps them understand and review the performance of their trading decisions. A day trader should always know what his/her goals are-how much they intend to make from each trade, what amount of capital to invest for each transaction, etc. Calculating profit or loss based on the current market movements provides them with rigid guidelines while setting up strategies for better results. This also helps keep a track record which allows investors to analyze past trends and find solutions that can result in improved profitability over time. Calculating both gains and losses using this method makes it easier for traders to monitor order execution processes without any hassle.
Day Trading Profit Calculator in Excel
This is the easiest way to start tracking the trades with Excel. First, set up columns for the asset being purchased, the trading time, stock price, the purchased quantity, and the commission. After that, set up similar columns to show what happens when you square off the position. Finally, calculate the performance based on the change in the security’s price and the percentage return on your trade.
Here, is an example of the Excel sheet.
In order to clarify the concept, here I’ve created an Excel sheet which contains important information of day trading. I’ve started the column with SL no, name of the script, Buying price, quantity, total purchase value, brokerage charges, service tax on brokerage, purchase value, sales rate, sales quantity, gross sell value, etc.
Download the Excel sheet from here.
The Mathematical Formulas in the Excel
As I’ve mentioned earlier that keeping the track record is the easiest way, there are few mathematical formulas and tricks with which one can easily track the record. For example, brokerage, service tax, gross sales value, net profit-loss value all are done by certain formula here. You just need to click on the particular figure and the formula will have appeared in the formula bar.
For example, here I show you how you can get the formula from the formula bar. In the above image, we have calculated the total purchase value by buying rate of a stock multiplied by quantity. As you can see the formula is visible in the formula bar (C3*D3).
We have understood that calculating intraday trading profit in Excel will make the job easier for a day trader. We have also discussed how to create one such Excel file easily. The profit-loss tracker works best for day traders. But, long-term investors also apply the same strategy to keep track records of their investments.