I often take into consideration other people who trade options around I actually do all day. I wonder once they utilize the best discount brokers that area available and even more importantly, how can they keep records of all their trade?
The aim of record keeping from the complex profession of stock broker for me is definitely about what is important there is. How can 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, per day, a month for any whole year? In my opinion the answer has long been a mixture of 3 methods. The very first approach to course will be to utilize a spreadsheet to keep a current total of stocks I own. I keep another spreadsheet to record all my expenses for each and every month, and also this is vital to know the grand total of all income sources and expenses including trading fees.
The most significant tool I personally use for all those my stock and option trading is Microsoft Access. While using Access database is the ideal tool for recording each stock or option trade. For options We have 39dexupky column that is representative of the amount of contracts for every option trade and also for options one contract represents 100 shares of stock. Basically If I buy and option contract then a contract number can be negative and in case I sell then your contract number could be positive. One other columns in the table will be for the price of an opportunity along with the trade fee, to calculate the whole for just about any option trade can be (100*Price*Contract) – Trade fee. Using SQL (Structured Query Language) has allowed me through the years to showcase very important statistics and reports to inform me how I am doing for virtually any stock or option trade type or strategy and summarizing performance by stock, option, month, day or year has been very simple to complete.
The most crucial point is how can you actually know how you are carrying out should you don’t keep records? You might get a stock put for you then sell it at loss, but recognize that overall as a result of option premium you received for selling the PUT which actually you made a profit on that trade overall. Without keeping records, you would never recognize how you truly did for almost any specific complex option trade.