I often take into consideration people who trade options around I truly do all day. I wonder if they use the best discount brokers that area available and even more importantly, how can they keep records of most their trade?
The aim of documentation in the complex profession of best strategies for me is just about it is essential there may be. Just how do you determine if you’re successful in trading options when you don’t know your profits and losses per stock, per trade type, per day, per month to get a whole year? For me personally the answer happens to be a combination of 3 methods. The initial method of course is always to make use of a spreadsheet to hold a current total of most stocks I own. I keep another spreadsheet to record my expenses for each and every month, and that is vital to understand the grand total of income sources and expenses including trading fees.
The most crucial tool I take advantage of for all my stock and option trading is Microsoft Access. Utilizing the Access database is an ideal tool for recording each stock or option trade. For options I actually have 39dexupky column that represents the amount of contracts for every option trade and for options one contract represents 100 shares of stock. Generally If I buy and option contract then your contract number would be negative and if I sell then a contract number could be positive. The other columns inside the table could be for the buying price of the possibility as well as the trade fee, to calculate the complete for any option trade can be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me through the years to display very important statistics and reports to let me know the way i am doing for just about any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year is super easy to achieve.
The main point is how can you really know how you are doing should you don’t keep records? You may get a stock put to you after which market it at loss, but then understand that overall because of the option premium you received for selling the PUT that actually you produced a profit on that trade overall. Without keeping records, you might never recognize how you really did for just about any specific complex option trade.