Trading Journal Entry For 2-05-2014

Amazingly, it was yet another near flawless day which we get to enter into our trading journal. Today we made three separate trades in total. Two standard high/low binary option contracts, and one series of 60-second binary option trades. All three ended up winners, but the 60-second trade(s) were mixed so we’ll go over those in more detail later. Let’s start with taking a look at our first trade entry for the day, on the NASDAQ.

binary options trading journal entry for nasdaq trade on 2/5/2014

We have been very “macro” focused recently, trading on the broader market based largely on our macroeconomic analysis. And it is a strategy which has been working well for us so far this week. We always preach to stick to what’s working and run quickly from what isn’t and we certainly try to follow our own advice. With that in mind the first thing we did after logging into our account was take a tour through the charts for all the indices available for trading. The NASDAQ jumped out at us when we changed it to a 3 hour window instead of the default 15 minutes, and we quickly entered the trade without further delay or analysis.

Believing that the NASDAQ was very likely just off a temporary bottom (the low in the chart above), at 20:02 we purchased a $100 call option on the NASDAQ at a rate of 4012.550, and with an expiry of 20:30 offering a return of 70%. We were not yet done though and ended up placing another trade prior to the first trade’s expiry. This wasn’t part of the plan but while cycling through some charts, APPLE on a bounce was looking like too tempting an opportunity.

traderush option builder trade on APPLE for 2/5 trading journal

As you can see from the image above we used the Traderush option builder feature to customize our contract to give this trade just a bit more time than the regular high/low option was offering (20:30 expiry vs. the 20:45 expiry we chose here). A nice side benefit of this was a higher payout rate of a few extra percent. Similar to our first trade, here we were also just playing on the likelihood of a temporary bounce. We remain bearish on US markets overall. This trade was entered as a call option at 20:07, with an expiry at 20:45 for $50 and offering a return of 77%. Our entry rate was at an APPLE price of 513.550. So, how about some outcomes on these trades?

trading journal investments history for high/low trades on 2/5/2014

The NASDAQ trade was basically never in any danger of doing anything other than finishing ITM, but the APPLE trade was a bit sketchier there near the end so we’re glad of the final outcome. In total we invested $150 on the trades and made returns of $258.50, a profit of $108.50 for both combined. But we’re not quite done. We did make a play with a series of 60-second options but they were very low value trades because our confidence level was not terribly high.

our simple 60 second binary options strategy at traderush 2/5/2014

This “series” made use of a pair option and was meant to compliment our other trade on APPLE using the standard high/low contract. If we were correct in our prediction regarding the price of APPLE, then most likely we would also see a strengthening in the APPLE/Google pair (as APPLE outperforms Google over this time frame). Of course, when you’re talking about 60-second contracts, well, anything can happen. Which is why we always trade 60-second options in a “series” as a simple but effective 60-second binary options strategy (or more accurately, one part of a strategy). Doing so helps dampen the short-run unpredictability inherent in such short-dated contracts.

outcome of 60-second trades for 2/5/2014 binary trading journal

As you can see the final results of this trade were mixed, but favorably so with a 2-to-1 split. This gave us a return of $33.60 on our $30 investment for a grand total of a whopping $3.60 profit! Whoo hoo party time! Okay so maybe not, but hey it’s better than a loss right? And that brings us to the end of today’s journal entry. We’ll close out with a look at our total Traderush investments history for the day.

total daily investment history outcomes for 2/5/2014

For the day we made a total of 5 trades for $180. Of those 5 trades, 4 were successful and returned a total of $292.10 on our $180 investment. This makes for a daily return rate of 62.3%, with a profit of $112.10 for the day. And that makes it three days into the week so far, with three days of winning trades. We can definitely live with that. So, until next time folks. Trade smart!

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