I notice that people like NW Bound mention their personal performance compared to the SP500. I am wondering about the mechanism for calculating this.
For example, if you trade in and out of stock positions, would you not need to adjust by some factor for buying in the middle of the year and selling etc.?
I can see that one might just go with the statistics from the brokerage account, but they seem to be only calculated once a month.
Also, in my case I have several accounts with the broker, but I don't segregate asset types to a certain account. Say, all bonds in one, all stocks in another.
Is the way this is being done simply to put all of your stocks into a spreadsheet with some initial base cash allocation and then record all trading in this spreadsheet without adding any cash so as not to distort the percentage result by adding cash for new buys in the middle of the year?
For example, if you trade in and out of stock positions, would you not need to adjust by some factor for buying in the middle of the year and selling etc.?
I can see that one might just go with the statistics from the brokerage account, but they seem to be only calculated once a month.
Also, in my case I have several accounts with the broker, but I don't segregate asset types to a certain account. Say, all bonds in one, all stocks in another.
Is the way this is being done simply to put all of your stocks into a spreadsheet with some initial base cash allocation and then record all trading in this spreadsheet without adding any cash so as not to distort the percentage result by adding cash for new buys in the middle of the year?