How to Measure Performance in Account

If you periodically put in or take out money in irregular amounts and times, how do you measure trading performance of the account, in the most effortless but accurate way? I always wondered this.

Would it be on gain or loss divided by the net sales (ie capital deployed)?

Or would it be gain/loss divided by average capital in account (ie net account assets) throughout year? How to calculate that?

Or something else?

 

I'd go with gain or loss divided by the net purchases (not sales) aka ROI.

 

Al performance is calculated based on satisfaction

 

Here is a link. Its very easy to keep track of in a spreadsheet and works like a charm.


http://www.fool.com/foolfaq/foolfaq0056.htm