I often take into consideration people who trade options around I actually do throughout the day. I wonder if they take advantage of the best discount brokers that area available and most importantly, how can they keep records of their trade?
The aim of record keeping within the complex profession of stock charts in my view is merely about it is important there may be. How will you determine if you’re successful in trading options when you don’t know your profits and losses per stock, per trade type, each day, each month to get a whole year? For me the best solution is definitely a mixture of 3 methods. The initial way of course would be to utilize a spreadsheet to hold a current total of most stocks I own. I keep another spreadsheet to record all my expenses for each month, and also this is essential to know the grand total of all the income sources and expenses including trading fees.
The main tool I prefer 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 have 39dexupky column that is representative of the number 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 a contract number can be negative and when I sell then this contract number can be positive. Another columns in the table could be for the price of the choice along with the trade fee, in order to calculate the entire for virtually any option trade could be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me over time to display very 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 continues to be very easy to perform.
The most crucial point is how can you actually know how you are carrying out if you don’t keep records? You can find a stock put to you personally and then market it at loss, but recognize that overall due to the option premium you received for selling the PUT that really you crafted a profit on that trade overall. Without keeping records, you might never understand how you really did for virtually any specific complex option trade.