Trading Journal Entry For 3-18-2014

It was a relatively “busy” day of trading for us today. Mostly because we were forced to start playing a game of catch-up almost right from the start. Never a great way to start the day. On average we only trade for about an hour or so a day, and make anywhere from 2-4 trades. On average. Today was more like yesterday, with some 8 standard high/low trades, and one ladder option trade. It was another good day for markets overall, with the major US indices having erased nearly all of last week’s losses in just the first two days of trading this week. That puts us back into cautious mode as we have a hard time seeing significant secular gains from these high levels without more economic improvement.

daily chart s&p500 index for 3-18-2014

Our first trade of the day was on the S&P500 index, and almost could not have been more poorly timed. In the image below you can see both the red trend line we have drawn on the chart, as well as the little arrow marking our entry point and level. We were trading on a pull-back from that resistance level, and instead we got a breakout. And while it bled off those gains from here, it didn’t do it fast enough to get us ITM before expiry. This put us in the unenviable position of having to fight from behind right from the start today.

expiry 1800 s&p500 index trade for 3-18-2014

S&P500 18:00 Expiry Summary – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 17:40 / 18:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1871.357 / 1872.150
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

18:00 expiry aud/usd trade for 3-18-2014

This next trade was made just 8 minutes after the first was opened. Well before its expiry (you can actually see the S&P trade at the bottom of the image). The AUD/USD pair is one of our preferred currency pairs to trade, and a market which we know decently well, and one we are usually profitable in. But none of that helped us here, unfortunately. There was just a 12 minute expiry window on this one, and while the downward trend remained intact, it didn’t cooperate during the 12 minutes we needed it to. If we ever catch those AUD/USD punks in a dark alley…

18:00 Expiry AUD/USD Trade – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 17:48 / 18:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1871.357 / 1872.150
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

At this point we would like to go way out of the trading order to show you our first public ladder options trade (we have traded them before for our review of GOptions originally). Ladder options are a variety of binary options contract that you can only find at a small handful of brokers for now. We think that this popular contract will probably spread eventually, like 60-second options did, but for now you only have few choices. But getting to the trade itself, we purchased the contract using Oil as our underlying asset, and for just the minimum amount of $25. Let’s take a look at the chart.

ladder options oil trade for 3-18-2014

Ladder options look and sound more complicated than they actually are in practice. Though developing strategies for these contracts can get interesting and complex, if you want it to. However, if you want to keep it simple you easily can. In the image above you can see the chart for oil, with the current price, and five different “Strike Price” levels. Then to the right is what we call the payout table. Once you’ve chosen your asset, your expiry, and your investment amount you can then choose from any one of ten different risk/reward profiles. For this trade we chose the “Below” contract where you see the finger pointer, at a 98.697 strike price. On our $25 investment this trade was offering a $97 return, which is 287.98%. And in fact this trade was indeed successful.

ladder options trade outcome for 3-18-2014

Ladder Options Contract Oil Trade Summary

Trade Outcome: ITM
Ladder Trade Type:
Below @ 98.697
Entry Time / Expiry: 18:22 / 19:00
Investment Amount: $25.00
Returns Offered: 287.98% = $97.00
Goal Rate / Expiry Rate: 98.697 / 98.690
Trade Profit/Loss: + $72.00 Profit

Pretty cool huh? We are definitely liking the ladder options. However, it is the standard high/low binary options contracts that are the “bread and butter” of almost every binary options trader. Since we made so many trades today in the name of space we will just present the rest as short summaries with the screenshot images. Next up was a string of three EUR/USD trades that went well, and a EUR/AUD trade that did not, leaving us a 3 and 1 win/loss split, which significantly improved our situation.

chart for losing eur/aud trade for 3-18-2014

18:30 Expiry EUR/AUD Trade – High/Low Call Option

Trade Outcome: OTM
Entry Time / Expiry:
 18:17 / 18:30
Investment: $100.00
Returns Offered: 75%
Entry Rate / Expiry Rate: 1.52585 / 1.52574
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

18:30 expiry eur/usd trade for 3-18-2014

18:30 Expiry EUR/USD Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:22 / 18:30
Investment: $100.00
Returns Offered: 85%
Entry Rate / Expiry Rate: 1.39257 / 1.39238
Returns Received: $185.00
Profit/Loss: +$85.00 Profit

expiry of 18:50 eur/usd trade for 3-18-2014

18:50 Expiry EUR/USD Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:41 / 18:50
Investment: $100.00
Returns Offered: 85%
Entry Rate / Expiry Rate: 1.39259 / 1.39247
Returns Received: $185.00
Profit/Loss: +$85.00 Profit

eur/usd trade expiring 19:10 on 3-18-2014

19:10 Expiry EUR/USD Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:56 / 19:10
Investment: $100.00
Returns Offered: 80%
Entry Rate / Expiry Rate: 1.39296 / 1.39279
Returns Received: $180.00
Profit/Loss: +$80.00 Profit

For our last two trades of the day we went back to the trusty treacherous S&P500 index. And, like the rest of the day, these trades to had split outcomes, with one win and one loss. A small net loss.

19:00 expiry s&p500 index trade for 3-18-2014

19:00 Expiry S&P Trade – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 18:33 / 19:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1872.570 / 1872.970
Returns Received: $0.00
Profit/Loss: -$100.00 Loss

final s&p500 index trade for 3-18-2014

Final S&P500 Index Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:14 / 20:00
Investment: $100.00
Returns Offered: 80%
Entry Rate / Expiry Rate: 1872.670 / 1872.000
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

Whew! And that, finally, brings us to the day’s investment history totals and summary. It sure wasn’t a great day, but happily we did manage to mostly salvage things by the end of the day. In fact, we ended the day almost perfectly break-even, with a loss of just a few bucks. That high-return ladder option trade saved out butt. So it looks like this week’s totals are going to be entirely dependent on these last few days of trading before the weekend.

daily investment history totals for 3-18-2014

Daily Investments History Totals For 3-18-2014

Trades Entered: Eight (8) Standard High/Low + One (1) Ladder Option
Trade Outcomes:
 Four (4) ITM + Four (4) OTM + (1) ITM Ladder
Total Investments: $825.00
Total Returns Received: $822.70
Total Daily Profit/Loss: A Whopping -$2.30 Daily Loss
Daily ROI: -0.02% Daily ROI

What a day all just to break even! But hey, it’s a heck of a lot better than a big loss for the day. Hopefully we can get back on track tomorrow, but these markets have not shown much of a willingness to cooperate on that so we’ll see. But until then, trade smart and be lucky folks!

Monday, 17th Trades

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