Record Keeping
Record keeping can be done either on computer or using a handwritten Trading Ledger. Most traders have a steady flow of paperwork coming from various sources including their stockbroker, the ASX, etc. This paperwork must be kept and filed for tax purposes and for proof of purchases and sales. It is also a good idea to classify and file frequently visited Internet sites in the Favorites list for fast and easy access.
The Trading Diary
In addition to maintaining a trading ledger it is a good idea to keep a diary describing the progress of each trade. The trading diary should contain comments such as “Bought at 25 cents - Price was on the way down and bottomed at 21 cents - Went early - Too optimistic”. The diary is very helpful for self-examination if rigorous self-honesty is applied. Filing
Buy & Sell Contracts, CHESS and Bank Statements must be kept and filed as an ATO (Australian Tax Office) requirement. It is a good idea to staple matching buy & sell contracts together and tag them with the net profit or loss. (Contact your Accountant or a qualified Professional for up-to-date ATO requirements.). Read more articles by Alan Hull. Read more articles by Stock Investor Journal. Get data to assist you in your active investing.
| Date | The date of the transaction |
| Buy or Sell | Indicate the type of transaction (Buying or Selling) |
| Share/Code | The name of the share or derivative and ASX code (Derivatives must include Exercise Price & Expiry Date) |
| No. of Units | The number of units being bought or sold |
| Price | The price per unit of the transaction |
| Profit | The net profit including slippage (Completed trades only) |
| Loss | The net loss including slippage (Completed trades only) |
| Cumulative Profit & Loss |
A running sum total of the ‘Profit’ and ‘Loss’ columns |
| Cost | The full cost of a purchase including slippage |
| Value | The full value of a sale including slippage |
| Account Balance | A running sum total of the ‘Cost’ and ‘Value’ columns |
In addition to maintaining a trading ledger it is a good idea to keep a diary describing the progress of each trade. The trading diary should contain comments such as “Bought at 25 cents - Price was on the way down and bottomed at 21 cents - Went early - Too optimistic”. The diary is very helpful for self-examination if rigorous self-honesty is applied. Filing
Buy & Sell Contracts, CHESS and Bank Statements must be kept and filed as an ATO (Australian Tax Office) requirement. It is a good idea to staple matching buy & sell contracts together and tag them with the net profit or loss. (Contact your Accountant or a qualified Professional for up-to-date ATO requirements.). Read more articles by Alan Hull. Read more articles by Stock Investor Journal. Get data to assist you in your active investing.