Trading Journal Entry For 1/31/2014

We did not actually make any trades today but we had one long-term trade expire today and we made two high/low trades yesterday, Thursday the 30th. They were a decent group of trades overall and we definitely came out ahead. However, we did have a “duh!” moment which cost us $85. Oops! It was a volatile week for the markets (which we love) but unfortunately we didn’t get a chance to trade much this week so we are looking forward to next week. Hopefully the volatility keeps coming for us.

The Bosses Trade Journal For 1/24 to 1/31

Lets go over our “long-term” trade first since we have been waiting on the outcome for awhile. We purchased this Call option on the S&P500 on Friday the 24th, with a week long expiry and $119 invested. This binary option contract was offering a return of 75%, or $208.25 on our $119 investment.

image of the bosses investments history at traderush

As you might be aware the market experienced some sharp drops early on in the week so we have been feeling pretty confident about this trade the whole time, just waiting for that expiry to roll around. And indeed, as you can see in the image above it all worked out in the end and our account was credited with the $208.25 which we were due. Nice!

Next up, not so nice. This was our painful and costly duh moment, unfortunately. We should have won on both those “FAZ-Short Banks” contracts but for a stupid mistake. Luckily it was on the smaller investment at least but still painful. Our analysis was for broad market declines, so that’s a put option right? Wrong in this case, doh! It is a SHORT contract, an inverse trade. It gains value as banks lose value. Therefore a Call option is a bet on bank price declines, not the other way around. Of course we knew all this when making the trade, but unfortunately had one of those brain-freeze moments and clicked through too quick.

screenshot from our faz-short banks trade at traderush

Just as we predicted markets generally, and banks in particular continued to decline throughout the day. Unfortunately this meant that our mistakenly made trade was a big fat loser. We did, however, attempt to make up for our mistake a bit by entering the trade again, but correctly this time and for a larger investment. And luckily the market continued to cooperate with us, banks got hammered, and our trade finished well in-the-money (ITM). So while we lost $85 on our foolish mistake trade, we gained $72 on the next one to almost mitigate our losses. Not bad considering how bad it could have been. Still, it just hurts to make such a stupid mistake.

Our long-term trade saved the day to make for an overall profit/loss on the trades of $76.25, not too shabby. Not great when you consider that those were the only trades we made this week. But we’ll take a small profit over any kind of loss all day. For the month we are only up a bit over $250. Which again isn’t great, but also isn’t terrible considering the small $ volume we traded this month. We hope to start strong next week and get in a lot more trade volume next month than we did this month. However, that will depend on how well things go. We follow our own advice of stepping back when trades are going against you, and stepping it up when they are going your way. Good luck with your own trading!

One Touch Binary Options Trading With Example

The One Touch Option – Weekly Options Trading

one touch option risk vs. reward in weekly options trading image One-Touch binary options are a very different beast than your other common varieties of binary option contracts. For one thing they can only be traded during the weekends when global markets are closed. For another they can have returns that exceed 100%, in some case by quite a lot. Obviously the greater the risks you take, the greater your potential rewards will be. These one-touch option contracts have become fairly popular in the last couple years and are now offered by most of the top brokers in the industry. Return rates can vary quite widely among brokers though so be sure to look at that whenever considering opening an account with someone.

What Are One-Touch Binary Options?

A type of exotic option that gives an investor a payout once the price of the underlying asset reaches or surpasses a predetermined barrier (Source: investopedia.com).

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One-touch options are also frequently referred to as “Touch/No Touch” options as well. These options are generally available on weekends only and have an expiry window that runs through the following week, expiring Friday at market close. If your one-touch option gets to that point though, then you have lost. This is because if at any time during the week that option were to reach the target level, the contract would be immediately closed out, and your account credited with the profits due you. As far as what those target levels are, that is predetermined by the broker based on market conditions and historical data. Sometimes you are presented with more than one choice of level but usually your only determinations are the direction (call/put), and the amount to invest.

a traderush one touch binary options trade image

As you can see from the image above the payouts on these one touch options can be very high indeed. In the case of the Traderush platform shown here (where our personal trading account is) you can find returns as high as 600% in some cases. A maximum return of 500% is more common, but a few other top brokers offers returns up to 600% so just do your homework before jumping in to find the best returns. So now that we know what one-touch binary options are, how do people go about trading them?

How To Trade Weekly Options – One Touch Option Example

Most brokers offer weekly options trading contracts in “units,” of $50 each (though we have seen a couple with $25 units). So clearly the minimum trade amount in these contracts is the cost of one unit, $50 in our example from Traderush. The return rate offered by your broker will be based on market conditions (volatility) and the distance between current price and the target price.

example picture of how to trade weekly options on the traderush platform

Luckily, learning how to trade weekly options is a breeze. Lets say that we are decidedly bearish on Gold at the moment (true) and believe that there is at least a reasonable chance of the asset going down to test that $1200 level next week before bouncing back up a bit (not quite true which is why we are not really executing this trade). These beliefs therefore lead us to purchase a put touch option contract for two units = $100 invested. This option will have until next Friday now to reach that target level of just under $1200 USD. Because the gap at the time of purchase is relatively large — at around $50 — the return rate offered is also relatively large at 430%, or $530 on our $100 investment.

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If at any point during the following week the price of Gold so much as touches that $1190 price level then our trade will be automatically closed out by the broker and our account credited with the $530 return due us. What a deal eh? If, however, we turned out to be wrong in our analysis and the Gold price never reaches that magic $1190 mark then we would be flat out of luck, a bit fat zero return. There are no refund rates offered on one-touch binary options. They are truly binary in nature.

Stay tuned for our upcoming articles on various strategies for trading one-touch option contracts!

Traderush Demo Account | Practice Binary Options Trading

Traderush Demo Account – Binary Options Practice Account

We were recently notified that for an unspecified “limited-time” our readers will be given access to a no-obligation, completely free Traderush demo account to practice binary options trading on. Since this kind of offer is actually fairly rare in the industry we think that many people will want to take advantage of this offer while they can. Whether you are new to binary options trading altogether, still considering trying them out, or an experienced trader you should strongly consider this offer. We don’t think you’ll be sorry that you did.

traderush demo account image from our practice binary options trading

For those who are considering jumping into binary options and those who have only been trading them for a short time, this could be a great opportunity to get in some practice without risking any of your own hard-earned money. If you are a seasoned vet, on the other hand, but have never had the opportunity to trade with Traderush then we would still strongly encourage you to give it a try. You very well may find that you prefer the Traderush platform to the one which you are currently using. We sure did, and have been clients ever since. And it costs nothing to find out, so why not?

Your free binary options practice account at Traderush will be stocked up with $500,000 in demo money to play around with and you will have access to all contract types and platform features. Traderush offers high/low options, one-touch, option builder, 60-second options, and the new pair options contracts. Access to the 60 second binary options demo account is especially useful given their popularity. And in addition to their great contract variety they also offer the widest selection of underlying assets to choose from in the entire industry at a whopping 175+ and counting.

This would appear to be a great time to introduce yourself to the leading binary options broker in the industry. Risk-Free. Simply register your free account and then send customer support a quick message with the code “DEMO500” for immediate access. Enjoy!

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