I often take into consideration individuals that trade options around I actually do all day long. I wonder should they utilize the best discount brokers that area available and more importantly, just how can they keep records of their trade?
The aim of documentation in the complex profession of stock charts i think is just about what is important there is. How will you know if you’re successful in trading options if you don’t know your profits and losses per stock, per trade type, every day, monthly for a whole year? In my opinion the solution has long been a combination of 3 methods. The first approach to course is always to work with a spreadsheet to keep a current total of all the stocks I own. I keep another spreadsheet to record all of my expenses for each and every month, and that is vital to know the grand total of all income sources and expenses including trading fees.
The main tool I personally use for all my stock and option trading is Microsoft Access. Making use of the Access database is the ideal tool for recording each stock or option trade. For options I have 39dexupky column that is representative of the amount of contracts for every option trade and then for options one contract represents 100 shares of stock. Basically If I buy and option contract then your contract number will be negative of course, if I sell then this contract number will be positive. The other columns within the table could be for the cost of the possibility and also the trade fee, so to calculate the total for any option trade will be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me over time to showcase extremely important statistics and reports to inform me how I am doing for just about any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year has been very easy to accomplish.
The most significant point is how can you fully realize how you are doing in the event you don’t keep records? You may get a stock put for your needs after which sell it off at loss, then again realize that overall because of the option premium you received for selling the PUT that truly you created a profit on that trade overall. Without keeping records, you might never know how you truly did for just about any specific complex option trade.