Daily Trading Journal Entry For 2-25-2014

Broad market measures ended relatively flat for the day, but it was somewhat of a wild ride in the getting there. This market is a potential train wreck waiting to happen in our view, and as a result we have been and will be sticking to only short-run trades, of under one-day at most. Of course we have been wrong before, and although he wasn’t right about much else, economist John Maynard Keynes‘ famous quote that “the market can remain irrational longer than you can remain solvent” is spot on, unfortunately. Which is why, in the short-run at least, you must let price action be your guide, not your macroeconomic thesis. And with that thought in mind, let’s start this off with the usual daily chart of the S&P500 index.

daily chart of the s&p500 index for 2-25-2014

That little leg up, just in the last 20 minutes or so of trading, may have helped the indices erase a decent portion of their losses for the day, but it sure didn’t do us any favors. We were actually looking for the opposite action, accelerating price declines in the last minutes of the US trading day. We didn’t actually have any trades open for this period, so it hasn’t cost us any money, yet. What it did do is make tomorrow’s opening action much harder to predict. It muddled up the technical analysis picture quite a lot. We have really not been liking these markets of the last, oh roughly two weeks probably, and it looks like that may be set to continue. But on to today’s trades…

detail chart for google trade on 2-25-2014

We didn’t get to take many screenshots today, but we made too many trades to have shown them all anyway. We made a total of 7 trades today, with 6 being standard high/low, and 1 pair options contract. As usual we will summarise the outcomes at the end of the post for easy reference. But first the individual trades. We did get in one shot though, of our very first trade at least. That’s the shot you see above, of course, and was taken about halfway into that first trade of the day. Like the others after it, it was a standard high/low put contract, purchased on Google. And it’s looking good so far right? But with plenty of time left for things to wrong, how did things end up?

Trade Summary For Google High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:31 / 19:00
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 1221.365 / 1218.855
Returns Received: $170.00
Profit/Loss: $70.00 Profit

Trade Summary For S&P500 Trades – 2 High/Low Put Options

The next two trades, well, they didn’t go quite so well as the first, returning a whopping $20 combined! Ah well, such is the life of financial markets speculation. Frankly if we can get out of this week at break even, or at least very close then we’d be perfectly happy with that outcome in this market. And hope for more favorable conditions next week. We may in fact even end up taking the next few days off from trading just to see how things develop.

S&P500 Index Put Option Trade #1

Trade Outcome: OTM
Entry Time / Expiry:
 19:05 / 19:30
Investment: $100
Returns Offered: 73%
Refund Rate: 10%
Entry Rate / Expiry Rate: 1845.71 / 1847.28
Returns Received: $10.00
Profit/Loss: -$90.00 Loss

S&P500 Index Put Option Trade #2

Trade Outcome: OTM
Entry Time / Expiry:
 19:18 / 19:30
Investment: $100
Returns Offered: 73%
Refund Rate: 10%
Entry Rate / Expiry Rate: 1846.81 / 1847.28
Returns Received: $10.00
Profit/Loss: -$90.00 Loss

Trade Summary For FB  v. TWT Pair Options Trade

This trade was made on the Facebook v. Twitter pair options contract, and was purchased as a put option. In this context that just means that we were expecting Twitter to perform better than Facebook over our chosen time period of 30 minutes. However, our confidence level on this was not especially high, and as a result we made a cautious investment of only $50, instead of our standard $100. Too bad we weren’t more bold here, because this was one of our winners of the day.

Trade Outcome: ITM
Entry Time / Expiry:
 19:33 / 20:00
Investment: $50
Returns Offered: 70%
Entry Rate / Expiry Rate: 1.26698 / 1.26586
Returns Received: $85.00
Profit/Loss: $35.00 Profit

For the last three trades we are just going to record the summaries, without any commentary. This is because we don’t have any pictures, and didn’t take any notes on our reasoning today. We try to always do so, but we obviously don’t always succeed.

Trade Summary For CitiGroup High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:36 / 20:00
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 48.715 / 48.675
Returns Received: $170.00
Profit/Loss: $70.00 Profit

Trade Summary For Starbucks High/Low Call Option

Trade Outcome: OTM
Entry Time / Expiry:
 20:04 / 20:30
Investment: $100
Returns Offered: 75%
Refund Rate: None
Entry Rate / Expiry Rate: 70.995 / 70.675
Returns Received: $0.00
Profit/Loss: -$100.00 Loss

Last up for today is a couple of currency pair trades. One of which worked, and one of which did not. Unfortunately, the one that worked was for an investment of half the size of the one that didn’t work.

Trade Summary For USD/CAD – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:30 / 20:00
Investment: $50
Returns Offered: 70%
Entry Rate / Expiry Rate: 1.10844 / 1.10813
Returns Received: $85.00
Profit/Loss: $35.00 Profit

Trade Summary For EUR/USD – High/Low Call Option

Trade Outcome: OTM
Entry Time / Expiry:
 19:30 / 20:00
Investment: $100
Returns Offered: 81%
Refund Rate: None
Entry Rate / Expiry Rate: 1.37465 / 1.37419
Returns Received: $0.00
Profit/Loss: -$100.00 Loss

daily traderush investment history for 2-25-2014 journal

Which finally brings us to the day’s grand totals, whew. As we mentioned in the opening, we made a total of seven (7) trades today. Six (6) of them were standard high/low binary option contracts, and one (1) was a standard pair options contract. Out of the seven total trades, four finished ITM, and three finished OTM. Let’s take a look.

Daily Investments History Totals For 2-25-2014

Trades Made: Six (6) Standard High/Low + One (1) Pair Options Contract
Trade Outcomes:
 Four (4) ITM + Three (3) OTM
Total Investments: $600.00
Total Returns Received: $530.00
Total Daily Profit/Loss: -$70.00 Total Daily Loss
Daily ROI: -11.7% Total Daily ROI

Not actually as bad as it first appears. Not good, but it definitely could have been worse. We may or may not be actively trading the next few days, but we’ll keep you posted. It may just be a good idea to step back for a couple of days and be an outside observer. So until next time, trade smart and be lucky!

Monday, 24th Entry | Tuesday, 25th Entry

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BinaryBoss

Jason--AKA "BinaryBoss"--is a graduate of WSU with a degree in economics with a financial markets focus. In 2009 Jason left his job with Microsoft in his home state of Washington to pursue a life of self-employment.

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