Just wondering how people calculate their performance in the market.
EG I started with $50,000 deposited into my account. I have bought and sold some shares for $5,000 profit and haven't had to add in any more to my account. I now have $55,000 invested but they are currently valued at $47,500.
So am I down 5% on my initial investment (50 - 47.5) or am I down 14% (55 - 47.5) with the re-investment of my profits? I realise it is not a loss until the shares are sold but if you are trying to track your performance over time how would you do it?
Does it come to a perception in your thinking or is there a standard practice that should be followed?