The latest innovation from Charles Schwab is targeted at all casual and active traders. A brand new Gain/Loss Analyzer tool launched late last week with a goal of analyzing stock and ETF trade history to relay relevant performance metrics.

For Schwab clients, the Gain/Loss Analyzer can be found within Trade Source. There is a notification of the new product launch at the top, and once dismissed the tool now has a module in the right sidebar.

For my personal Schwab account I simply passive index with the S&P 500 so my widget had no data to relay. I pulled a screenshot from the introduction video though which has data. You can see how both look side by side.

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Gain/Loss Analyzer at launch includes a variety of performance metrics: total gains, total losses, net gain, gain/loss ratio, average gain, average loss, profitable trades, unprofitable trades, and profitability rate.

Having been a full-time day trader myself for several years when I was younger, I found this initial launch to be a good foundation for the future. The implementation is clean and visually appealing.

That said, there is one important flaw / point of consideration that Gain/Loss Analyzer needs to pay attention to and address with future iterations.

In the current state, the primary Gain/Loss Ratio graphic, alongside key metrics, puts way too much emphasis on win/loss which is a critical mistake. Many of the best traders in the world bat well under .500, but they have great risk management and are extremely profitable. Personally, after over a thousand trades, I was batting between .25 – .30 and still able to maintain overall profitability.

If Schwab is not careful with Gain/Loss Analyzer long term, they will probably succeed in driving fresh DARTs; however, do so at the expense of burning out clients and driving their portfolios well into the red.

Education and the right analytical approach is critical to sustainable active trading. This is something we stress with our own free Trade Journal tool at sister site StockTrader.com which is used by over 10,000 registered traders.

Theories aside, Gain/Loss Analyzer is an extremely creative innovation out of Schwab and I look forward to seeing it evolve in the future. The foundation is clean, crisp, and the analysis should prove to be insightful for clients.

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