Metrics for Solana crypto trading 101

There’s a few metrics you can track to help your trading performance, they will help if you’re going in the right direction or running in circles.

• Return on investment (ROI): Evaluate your profits and losses to assess the performance of your trading.
• Win rate: Measure the percentage of profitable trades to feel the effectiveness of your trading strategy and of your signals as well.
• Average profit and loss: Analyzing your average gains and losses per trade gives insight into your trading performance per trade and helps in adjusting your smart money trading strategies as well as your risk management.
• Risk-to-reward ratio: Compare the potential profit of a trade to its risk. A favorable ratio, such as 2:1, indicates a higher potential reward compared to the risk involved.
• Trading volume: The volume of a token helps to understand market liquidity, which can influence price movements, especially in popular memecoins.
• Market sentiment: What is the overall mood of the world and of the crypto space? How does the news and the socials are talking about the state of where the industry is? Take it with a grain of salt considering that it’s not all that matters.