Build a Trading Record Sheet That Survives an Audit

[Fairman]

Build a Trading Record Sheet That Survives an Audit

Scenario: your country may require you to report trading profits, and rules differ widely, so this exercise is about records, not tax advice. A local accountant should confirm what applies to you.

Design the sheet with these columns: date closed, instrument, direction, size, entry price, exit price, gross result in account currency, spread and commission, swap, net result, exchange rate to local currency on the closing date, and net result in local currency. Add a notes column for platform ticket numbers.

Fill one example. A trade closes with a net result of plus 200 dollars. The exchange rate to local currency on that date is 1,500 per dollar. Net result in local currency: 300,000 units.

Add a second sheet for cash movements: deposits, withdrawals, dates, amounts in both currencies, the rate applied, and fees. A deposit of 1,500,000 units that became 970.87 dollars is recorded with both figures.

Add monthly totals and a yearly summary. Reconcile with broker statements each month: the sum of your net results should match the account change after adjusting for deposits and withdrawals.

Store the broker's monthly statements as files, with names that include the year and month. Keep screenshots of unusual events.

Why bother? When you need to explain your results to an accountant, a lender, a prop firm, or an authority, a clean record saves time and avoids disputes.

Do it monthly. Reconstructing a year in a weekend is painful.

Exercise: create the template and enter your last five trades.