I often take into consideration individuals that trade options around I really do all day long. I wonder once they utilize the best discount brokers that area available and even more importantly, how do they keep records of their trade?
The point of documentation from the complex profession of stock charts for me is just about the most important thing there is certainly. How will you determine you’re successful in trading options in the event you don’t know your profits and losses per stock, per trade type, per day, a month for a whole year? For me the answer is definitely a variety of 3 methods. The 1st way of course would be to use a spreadsheet to hold a current total of all the stocks I own. I keep another spreadsheet to record my expenses for each and every month, and this is critical to know the grand total of all the income sources and expenses including trading fees.
The main tool I personally use for those my stock and option trading is Microsoft Access. Making use of 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 amount of contracts for each and every option trade as well as for options one contract represents 100 shares of stock. If I buy and option contract then the contract number will be negative of course, if I sell then your contract number will be positive. The other columns inside the table would be for the price tag on the possibility as well as the trade fee, so to calculate the whole for almost any option trade can be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me through the years to showcase crucial statistics and reports to tell me the way i am doing for virtually any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year is very easy to complete.
The most important point is how can you really know how you are doing when you don’t keep records? You may get a stock put for you after which market it at loss, however know that overall due to option premium you received for selling the PUT which actually you crafted a profit on that trade overall. Without keeping records, you would never recognize how you truly did for virtually any specific complex option trade.