I often think of people who trade options up to I actually do throughout the day. I wonder when they use the best discount brokers that area available and more importantly, just how do they keep records of all their trade?
The point of documentation from the complex profession of best strategies in my view is simply about it is important there is certainly. Just how do you determine you’re successful in trading options should you don’t know your profits and losses per stock, per trade type, per day, each month to get a whole year? For me personally the solution is definitely a variety of 3 methods. The very first means of course will be to make use of a spreadsheet to hold a current total of stocks I own. I keep another spreadsheet to record all my expenses for every month, and that is important to know the grand total of income sources and expenses including trading fees.
The most crucial tool I personally use for many my stock and option trading is Microsoft Access. Using the Access database is the perfect tool for recording each stock or option trade. For options I have 39dexupky column that is representative of the quantity of contracts for each and every option trade and then for options one contract represents 100 shares of stock. Should I buy and option contract then your contract number could be negative and if I sell then a contract number would be positive. One other columns in the table would be for the price tag on the option and also the trade fee, so to calculate the whole for almost any option trade will be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me over the years to showcase crucial statistics and reports to let me know how I am doing for any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year has become super easy to complete.
The most significant point is how will you really know how you are doing in the event you don’t keep records? You can find a stock put for you then sell it at loss, then again understand that overall due to the option premium you received for selling the PUT that actually you created a profit on that trade overall. Without keeping records, you would probably never learn how you undoubtedly did for any specific complex option trade.