Trading Journal Entry For 3-5-2014

Welcome back to our trading journal entries. We took the day off from trading yesterday because we missed the opening bell, and that is where all of the day’s action took place. After that, it was nothing but sideways movement with near zero volatility. Sure we could have chart cycled until we found single assets that were bucking the trend, and we did for a little while anyway. But the fact of the matter was that they were just not favorable market conditions for our style of trading. Eventually we made the smart move and just walked away for the day. And we’re glad we did because conditions were much more favorable today. Flat overall, but highly volatile in-between.

daily s&p500 index chart for 3-5-2014

Binary Options Trading Summaries For 3-5-2014

Today was a day of mixed-assets trading, with a couple of index trades and a couple of stock option trades. All of our trades today were made within a 20 minute period, and were based entirely on technical chart analysis (using TDAmeritrade’s TOS software, of course). Let’s take a look at our first trade of the day, on the NASDAQ index.

nasdaq futures trade for 3-5-2014

This trade appears to be our cleanest, highest probability play of the day. The only thing that could have made the setup any better would have been getting in a bit quicker than we did. A bit slow on the trigger pull here, and that can cost you. However, in this case it would not have mattered. And not in the way you may be thinking, nope. Almost immediately after this picture was taken price began rebounding sharply, and never looked back before expiry. So, what appeared to be our best setup of the day ended up being our one and only losing finish of the day. Such is the life of a trader.

NASDAQ Index Trade Summary – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 17:53 / 18:15
Investment: $100
Returns Offered: 73%
OTM Refund Offered: 10%
Entry Rate / Expiry Rate: 3727.1557 / 3730.6250
Returns Received: $10.00
Profit/Loss: -$90.00 Loss

facebook and microsoft trades for 3-5-2014

Next up for today was a pair of complimentary binary stock option trades. Unfortunately we don’t have screenshots for the detailed TOS charts with our technical analysis, so you can’t see what we were seeing to get us into these trades. Neither one was as good of a setup as our first trade, but both were pretty decent, and we thought worth a $100 shot apiece. The Microsoft trade was a little worrying the entire time, with very light trading volume and jerky movements for this option. In the end though, everything turned out just fine, with both trades finishing safely ITM.

Facebook Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:07 / 18:30
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 71.5223 / 71.4150
Returns Received: $170.00
Profit/Loss: $70.00 Profit

Microsoft Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:06 / 19:00
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 38.00 / 37.97
Returns Received: $170.00
Profit/Loss: $70.00 Profit

s&p500 index trade for 3-5-2014

The final trade which we made today was another index play. This time on our favorite of trading indices, the good ol’ S&P500. Now on the chart above it looks like some kind of kamikaze play. Like we are betting against a strong trend. And this is one of the reasons why we use more advanced and flexible, off-site charting software. And why you should too. In reality price was bumping up against a short-run resistance level here. A resistance level which it had already failed to break through once today. Our money was on a second failure. And indeed, that was the final outcome for another nice ITM finish.

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

Trade Outcome: ITM
Entry Time / Expiry:
 18:17 / 18:30
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 1876.113 / 1875.190
Returns Received: $170.00
Profit/Loss: $70.00 Profit

Which now brings us to our total investments history for the day. We made only four trades today, all of which were standard high/low binary options, and all of which were made for an even $100 investment. Of those four trades, three finished ITM, and one finished OTM. Overall it was a pretty decent day from both a percentage basis, and an absolute one.

Daily Investments History Totals For 3-5-2014

Trades Made: Four (4) Standard High/Low
Trade Outcomes:
 Three (3) ITM + One (1) OTM
Total Investments: $400.00
Total Returns Received: $520.00
Total Daily Profit/Loss: +$120.00 Total Daily Profit
Daily ROI: +30.0% Daily ROI

investment history for 3-5-2014 binary options trading

For the week so far we’ve gone 2 for 2 winning days, having not done any trading on Tuesday. We do plan to actively trade for the last two trading days this week, but, as always, that will depend on market conditions. We won’t force ourselves to trade in unfavorable markets. Nor should you. Walk away and live to fight another day is our philosophy regarding that. So until next time folks, trade smart and be lucky!

Monday, 3rd Trades | Tuesday, 4th No Trades

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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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