The US markets (our preferred markets to trade on) today were not favorable to our personal trading style, and we almost stayed out of them altogether for the day. After all, it was just this last Friday that we got smacked by the markets for not following our own advice against trading without conviction. However, we did end up spotting a few relatively decent technical setups that seemed worth a shot. We also made a single series trade of 60-second options for a measly $30 while we were waiting for our “real” trades to expire. It was done just for fun basically and the trades were based on nothing more than guesses. The outcome was a $30 loss and we aren’t even going to detail the trade here beyond this summary. So, let’s get on to the real trading of the day.
All of our trades today were very short-term, and based solely on technical analysis factors. Our fundamental views did not enter into any of these trades. That was certainly true of of the Silver trade which is captured in the image above, taken just after entry. As we mentioned in the introduction, we did not like today’s markets, and even for the trades which we did end up entering, we were still not overly confident in them. So despite the fairly strong technical setup here suggesting an impending decline, we remained cautious with an investment of only $50 on the trade. It was a standard high/low binary option contract offering a return rate of 70%, and with an expiry of 18:30, purchased at about 18:15. But prior to the expiry of this option we ended up entering into another position.
After placing our first trade we started cycling through the 3 hour charts of some of our favorite underlying assets to see if anything would jump out at us. We didn’t see anything which we really liked, but the Oil trade pictured above was at least good enough to be worth a chance, we felt. It may seem counterintuitive that we purchased this as a put contract in this position. After all it appears that the oil price may be turning around, and due for at least a temporary bounce higher. And in fact this was a close trade that could have easily gone either way. Luckily, in the end it went our way. The silver trade, on the other hand, finished just barely on the “wrong” side for an OTM finish there.
At this point, down by a small amount, we thought we were probably done for the day. A small, $40 loss we can easily live with but we felt that if we continued trading, chances were that number would just grow. Better to wait it out and come back when market conditions are more favorable to us. But it wasn’t to be.
We still kept an eye on the markets while working on some other things and we noticed that several currency pairs involving the USD were jumping all over the place.So at that point we logged back into our Traderush account to take a closer look at things. Of our favorite USD paired currency pairs, the EUR/USD had the most interesting chart for us. As you can see in the image below we entered the put option trade as the EUR/USD pair was touching its previous high for the day.
Volatility merely increased after our entry into the trade. First declining just as sharply as it originally rose, and then rising again even more sharply than before, only to fall again to near a new low for the day. A wild ride. But a wild ride that worked out quite well for us in the end. We entered this trade at 18:36 for $100, with a hefty return rate of 81% being offered, and with an expiry of 19:00. The trade finished ITM for a $181 payout and $81 profit.
And that bring us to the daily roundup. Leaving out the 60-second series trade, we made a total of three standard high/low binary option trades, with two being winners and one a loser. We invested a total of $200 on the combined trades and received a return of $271, for a profit of $71. Unfortunately, that doesn’t include our $30 loss from the 60-second trade. Taking that into account we invested a total for the day of $230, and received a return of $271, a profit of $41 for the day. A decidedly small profit, but a small profit is better than a loss any day.
Well that’s it for today’s binary options trading journal entry. We hope you enjoyed it. Please feel free to comment below or contact us with your feedback! Until next time folks, trade smart and stay safe out there!