I often think about other people who trade options up to I truly do all day. I wonder should they take advantage of the best discount brokers that area available and more importantly, just how do they keep records of their trade?
The aim of record keeping from the complex profession of stock broker for me is simply about it is important there is. Just how do you determine if you’re successful in trading options in the event you don’t know your profits and losses per stock, per trade type, every day, monthly for the whole year? For me the perfect solution is definitely a variety of 3 methods. The initial way of course is always to utilize a spreadsheet to maintain a current total of most stocks I own. I keep another spreadsheet to record all of my expenses for each and every month, and this is critical to find out the grand total of income sources and expenses including trading fees.
The most significant tool I use for many my stock and option trading is Microsoft Access. While using Access database is an ideal tool for recording each stock or option trade. For options I actually have 39dexupky column that represents the number of contracts for every single option trade and for options one contract represents 100 shares of stock. Basically If I buy and option contract then the contract number can be negative and if I sell then a contract number would be positive. One other columns in the table would be for the cost of an opportunity along with the trade fee, to calculate the entire for almost any option trade would be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me throughout the years to display very important statistics and reports to tell me the way i am doing for almost any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year continues to be very simple to achieve.
The most important point is how will you fully realize how you are doing in the event you don’t keep records? You might get a stock put to you then sell it at loss, but then understand that overall due to the option premium you received for selling the PUT that truly you crafted a profit on that trade overall. Without keeping records, you will never know how you actually did for just about any specific complex option trade.