Sunday, December 15, 2019

Simple Trade Book

     This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start. 

     I keep a very simple TRADE BOOK where I enter all my trades. I am old school (Hell, I am old) and use a ruled spiral paper notebook  and ball point pen.
   
     I also use a green highlighter pen for drawing a line thru my profitable trades and a red one for my loses. The thin highlighter pen lets the trade show thru but I can tell at a glance that it is closed.

     I will not show my actual paper notebook. It is much easier to explain with a printed Exel page. I have used "green backgrounds" on this page to indicate my drawing thru a trade with my highlighter pen.



    I will explain each line and how I use it. 

The vertical "letter" lines explain the reason for each column.

     A. "EX -DATE" =
          dividend ex-date

     C. "DIVIDEND" = 
           amount of dividend paid per share

     E. "DATE # SYMBOL" @ PRICE =
          DATE = date of trade
          # = number of shares 
          SYMBOL = stock symbol
          PRICE = price paid

     G. "SALE-DATE @ PRICE
           date of sale and price 

     I. "PAY-DATE"
         the date the dividend will be paid
         


The horizontal "number" lines record the trade information
   
  There are 3 types of stocks
   
     1. stock with upcoming dividend (illustrated  in line2)
         "ex-date", "dividend amount", "pay-date" are recorded

     2. stock that has already paid current dividend (line 3)
         "????" is recorded (do not know next ex-date)

     3. stock paying no dividend (line 4)
         "XXX" recorded to show no dividend

I use "????" and "XXX" to show that I did not just fail to record the type of stock trade.


How I use my highlighter after a sale 

 Type 1 stock.

     Line 7 (a stock sold before ex-date)
     I draw a line thru every column as I am done with the trade

    Line 9 (stock sold after ex-date)
    A line thru "date#symbol@price & sale-date@price columns)
    I circle "dividend & pay-date columns" to show I am owned a dividend on "pay-date" even though I have sold the stock

Type 2 & 3 stock 
     These trades are just draw thru as no further action is needed

As my trade book page gets full with current open trades and highlighted closed trades, I will turn to a new page and just re-enter my open trades to cut down on the clutter and keep all my open trades on one page.

I can thumb back thru all my trades (I never throw away a trade book) to see if they might work 
again. 

     It seems like a long explanation but it is really very simple. No need to write the column headers once you start using it. 

Disclaimer, I am not a professional.

     



    
     

     

    



     
         

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