Trading is a business.  For some a small business, for others a more substantial enterprise. Like any other business the math is pretty simple:  revenues-expenses=profit.  Most of what passes for insight into investing focuses on generating entry and exit signals.  However what matters is what you generate in net, after-tax profits.  Focusing on items like costs and taxes can be an easier path to profits than entries and exits.  In today’s screencast a review of what success in trading really means.

Items mentioned in the above screencast:

After-tax returns matter.  (InvestmentNews)

Taxes are more important than alpha.  (Empirical Finance Blog)

Want higher trading profits?  Lower your commissions.  (The Minimalist Trader)

The tax treatment of futures contracts is now a topic of conversation.  (Dealbook)