Who likes to do chores? If you are like me, there are definitely other things I would rather do. That said, when you have completed your chores, there is a sense of accomplishment. Whether it is cleaning your closet or basement or organizing your budget, the new year is a good time to get things in order. But what about your option trading? Have you thought about taking an inventory of your trading in 2024 as one of your chores? If not, you probably should put it on the list.
Taking Inventory
Reviewing your trades and taking inventory of your trading in 2024 can do a couple of things. First and foremost, it can tell you how much you made or lost throughout the year. I say this all the time, but your progress should not only be measured in dollars and cents. Sometimes a trader makes real progress, but the growth cannot be seen in dollars and cents. On the flip side, a trader can be successful in making money in the short term, but lack of discipline could lead to failure down the road. Digging deep and looking at past trades can expose the good and the bad.
Best Strategies Revealed
In addition, a trader sometimes does not notice what their best strategy is until after they review their trades. For example, an option trader might think they have done well selling credit spreads but in reviewing the trades could discover they actually made more money and lost less when buying vertical spreads. Trust me, trade review can be really eye-opening. I have experienced it firsthand.
Finally
With the new year well under way and the holidays far behind us, this is the perfect time to consider taking inventory of your option trading. It may expose some strengths and weaknesses as well as give you some ideas and amendments for your trading plan. There’s no time like the present!
John Kmiecik
Senior Options Instructor
Market Taker Mentoring
