I often think about individuals that trade options up to I truly do all day long. I wonder should they use the best discount brokers that area available and above all, just how can they keep records of their trade?
The point of documentation inside the complex profession of best strategies for me is just about it is essential there is certainly. How will you determine if you’re successful in trading options if you don’t know your profits and losses per stock, per trade type, each day, monthly for the whole year? In my opinion the solution happens to be a mix of 3 methods. The first approach to course is always to use a spreadsheet to maintain a current total of stocks I own. I keep another spreadsheet to record all my expenses for each and every month, and that is important to understand the grand total of all the income sources and expenses including trading fees.
The most significant tool I use for all those my stock and option trading is Microsoft Access. Utilizing the Access database is the best tool for recording each stock or option trade. For options We have 39dexupky column that represents the amount of contracts for every single option trade and for options one contract represents 100 shares of stock. Generally If I buy and option contract then the contract number could be negative and if I sell then a contract number could be positive. Another columns from the table can be for the cost of the choice along with the trade fee, in order to calculate the total for just about any option trade could be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me throughout the years to display extremely important statistics and reports to inform 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 is very simple to accomplish.
The most significant point is how could you truly know how you are carrying out in the event you don’t keep records? You can find a stock put to you personally then sell it at loss, then again realize that overall as a result of option premium you received for selling the PUT that actually you produced a profit on that trade overall. Without keeping records, you would probably never recognize how you truly did for virtually any specific complex option trade.