Imagine you’ve invested $1000 into 10 different stocks ($100 for each). One of them grown +50% and you sold it. +50% is ROI, right? And 50% from $100 = $50 which is 5% of the total stack size. What’s the right term for this +5% indicator? Thanks!

  • Do you mean the investment is on 10 different stocks? – Kannan Mar 20 '18 at 4:06
  • @Kannan yes, 10 different stocks. – Sergey Mar 20 '18 at 10:16
  • You would call it something like “contribution”; because that is what it does, it contributes with 5% to the total portfolio return. – ssn Mar 20 '18 at 13:33
  • @ssn nice suggestion, thanks! it could be CTP (Contribution to Portfolio) – Sergey Mar 20 '18 at 16:17
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    Both are ROI. Your second portfolio based ROI will need a footnote because that's a really unusual thing to track. Specific trade result return based on whole portfolio cost isn't really meaningful. Typically you want to know how you did in a trade, then you want to know how your whole portfolio is doing, how this one trade did against your whole portfolio would be an unusual thing to look at it's like assuming you used all your portfolio assets to take that specific relatively small position and that's not what happened anyway. – quid Mar 20 '18 at 20:21

Return on Investment - ROI

The first one is your ROI for an individual stock.

The second one is your ROI for the whole portfolio, or for your account.

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    @Sergey ROI is the standard term. Investment can mean any investment, including either a single stock or a portfolio, so there's no reason to introduce a different term to distinguish the two. – D Stanley Mar 20 '18 at 14:46
  • @DStanley Buy I have to name fields somehow in the report 🤷‍♂️ – Sergey Mar 20 '18 at 16:17
  • @Sergey "Portfolio ROI", if you must – AakashM Mar 21 '18 at 9:41
  • @Sergey - I don't think what you are trying to do will end up meaning very much in the end - what will it tell you about the performance of your portfolio? A better way is to analyse your positions in terms of risk and in terms of expectancy. Read "Trade your way to financial freedom" by Van Tharp if you want to learn more. – Victor Mar 21 '18 at 10:06

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