A Reminder to Review Your Trades

Posted on Friday, March 1, 2019 at 10:56 AM

I have mentioned this before and will continue to mention it as much as I can: Please record your trades and review them often. Simply put, there is no better way to see what you are doing wrong and doing right. To me, it has always been an eye-opening experience to go back and review my trades. The reason to do this is to get better. But there is also another reason and that is to learn.

In Group Coaching, I tell traders to take screenshots all the time. I also tell them to take screenshots if they are paper trading. A trader will not learn much if he or she is just focused on the P&L statement, particularly if paper trading. But taking a screenshot like the one below and seeing how the option prices and greeks change over time can really benefit the option trader.

In the example above, a Mar-01/ Apr-2019 call calendar was purchased for 4.75 (5.75 – 1). After the stock moved higher and time had passed, you can see that the option prices and the greeks have changed as seen below.

You can see that same trade now would have to be purchased for 5.89 (6.85 – 0.96). The value has gone up 1.14 (5.89 – 4.75). But why has the value increased? That is what screenshots and reviewing them can do for you. There are so many moving parts with options. This will help you get a better feel about what is really going on…promise!

Taking screenshots, reviewing your trades and learning from how your trades function can help a trader tremendously. All it takes is a little effort, which will pay off handsomely.

John Kmiecik
Senior Options Instructor
Market Taker Mentoring, Inc.

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