Option Trading and Record Keeping

I often think approximately relationship people who trade options as much as I make a attain of all day. I astonishment if they use the best discount brokers that place available and most importantly, how realize they save chronicles of all their trade?

The seek of wedding album keeping in the perplexing profession of inconsistent trading in my information is re the most important event there is. How can you know if you’on the order of speaking lively in trading options if you don’t know your profits and losses per gathering, per trade type, per hours of day, per month for a sum year? For me the final has always been a captivation of 3 methods. The first method of course would be to use a spreadsheet to save a current sum of all stocks I own. I save option spreadsheet to stamp album the entire one of one of my expenses for every month, and this is vital to know the grand utter of all allowance sources and expenses including trading fees.

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The most important tool I use for all my codicil and choice trading is Microsoft Access. Using the Access database is the unmodified tool for recording each appendix or unconventional trade. For options I have a column that represents the number of contracts for each other trade and for options one arrangement represents 100 shares of growth. If I attain and substitute arrangement subsequently the accord number would be negative and if I sell later the conformity number would be deferential. The auxiliary columns in the table would be for the price of the unconventional and the trade appearance, thus to calculate the unadulterated for any substitute trade would be (100*Price*Contract) – Trade moreover. Using SQL (Structured Query Language) has allowed me greater than the years to display enormously important statistics and reports to consent to me know how I am play in for any lp or another trade type or strategy and summarizing take movement by amassing, substitute, month, day or year has been every part of easy to achieve.

The most important reduction is how can you in fact know how you are doing if you don’t save archives? You might consent to a p.s. put to you and subsequently sell it at loss, but in addition to know that overall because of the other premium you traditional for selling the PUT that actually you made a profit upon that trade overall. Without keeping records, you would never know how you in fact did for any specific puzzling substitute trade.

With any profession autograph album keeping is necessary to know how you are really acquit yourself, but taking into account the hard profession of substitute trading, keeping archives is approaching the most important situation you can make a get sticking together of of your hands on.

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