The first and the foremost tool in trading are an Options Trading Journal. An option trade can be as small as a stock option or as big as a mortgage for a million dollars. The thing that’s important is that the trader maintains regularity in performing his option trading journal as it becomes the biggest factor that could make the difference between a losing trade and a profitable one.
To maintain the trading journal, you don’t need any special software but you can make use of the Internet. By using an options trading journal spreadsheet, you can effectively keep track of your trades which will eventually increase your chances of making more money.
Importance of an Options Trading Journal
This is a very effective tool that will help you in understanding market trends better. This spreadsheet will not only help you in keeping track of your trades, but also help you in building up an understanding of the market.
You can use this as a guide to help you in deciding on which direction to go in and also help you in figuring out various indices, fees, strike prices, options type, chart support and resistance and other factors that influence your trades. The benefits are many that can save you time and effort.
An options trading journal spreadsheet will help you in planning and formulating various steps in order to successfully make a winning trade. It will also help you in evaluating different aspects such as minimum call prices, minimum put prices, premium and average cost.
With this tool, you will be able to stop and start your trades. There is a feature which allows you to type in a certain time frame and then you can put up a chart and graph to check whether the trade is successful or not.
You can also enter a stop loss and automatically execute the trade once the minimums and maximums are met. It will also help you to add more indicators to help you in trading so that you can figure out the right strategy for a given trade.
There are a number of other keys to be able to evaluate the performance of your trades. For example, you can add a time element in the chart by which you can measure how much time you have to decide on the next trade.
Option trading journals have been proven to provide information that is most useful to traders since they provide the key details about each option. This can provide the information that a trader needs in order to make the best decision possible on each trade.
A Trading Journal will also help in evaluating the real-time trend of a particular option. It can be beneficial to you in terms of planning for future options trades because it will help you to identify the best strategies for you to choose.
Options trading journals allow you to decide on the market trends that you need to consider while you’re in the market. It is therefore important to consider the benefits that this kind of tool provides you in terms of promoting efficiency and determining the market trends in a better way.
This is why you should include options trading journal in your list of tools that you’ll need for your trading practice. It is the easiest way to track your trades and will help you in improving your chances of success. PLEASE READ : options tracking spreadsheet
