Trading Journal Entry For Friday 3-14-2014

Welcome back everyone. After taking the day off from trading yesterday, we came back today to see that we missed quite a day, and that it looked like we had quite another in the making for today. Looking at yesterday’s charts we’re sorry that we didn’t get a chance to take part. But such is life. Let’s move on to today’s action shall we. The first half of the day was spent in indecisive mode, oscillating back and forth around the centerline of its opening price level for much of the day. The afternoon, however, appears to have brought us the confirmation move that we were looking for. Monday’s open should be extremely telling, and we will be watching closely. We’ve got three days of consecutive declines now, and they haven’t been insignificant declines either.

daily chart of the s&p500 index for 3-14-2014

Moving on to our own binary options trading for today. We didn’t trade all that actively today, making only three standard high/low options trade for the day. However we also had one expiring “long-term” play from Wednesday’s trading (a mistake that turned out well in the end), for a total of four trades closing out today.

oil and sp500 future trades for 3-14-2014

Somehow we didn’t end up with a picture for our first trade of the day, a trade on the S&P500 futures index, which also happens to be our only losing trade of the day. Long story short we purchased a put option at about the 12:30 point on the chart up top of the S&P. And as you can see from the chart price did indeed decline from there, fairly significantly even. Unfortunately, as you can also see from that chart, price spiked up very briefly just prior to 1:00 (the contract’s expiry), before continuing on its decline for the rest of the afternoon. It was a good trade that just suffered from some bad luck. It happens.

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

Trade Outcome: OTM
Entry Time / Expiry:
 16:29 / 17:00
Investment: $150.00
Returns Offered: 73%
OTM Refund Rate: 0%
Entry Rate / Expiry Rate: 1846.5865 / 1848.8750
Returns Received: A Big, Fat Zero – $0.00
Profit/Loss: -$150.00 Total Loss

The next trade we made was a very nice looking setup on Oil. This trade is actually the one you can see the chart for in the picture above. You can’t really see very well what we were trading on in the short time window of the chart above, but in our TOS charting software the technical setup was obvious. Because the setup was so nice looking we stepped it up a bit again with a $150 investment for a standard high/low put option contract. And in fact in the end price behaved very much like we expected it to, and the trade finished safely ITM by closing.

Oil Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:01 / 17:30
Investment: $150.00
Returns Offered: 70%
Entry Rate / Expiry Rate: 98.660 / 98.575
Returns Received: $255.00
Profit/Loss: $105.00 Profit

towards closing of eur/usd trade for 3-14-2014

Coming back after about an hour break from trading we entered into our final trade for the day (excluding that long-term trade which will expire), on the ever popular EUR/USD currency pair. This pair often offers the high return rate of 81% so it is a good trade when your confidence levels are high enough. But it can also be a difficult pair to trade. Anyway, we spotted what looked like a good chance of a temporary bottoming bounce, off a previous low which price had bounced off of a few times before already. And as you can see in our screenshot above, the trade went well right from the beginning, and just kept steadily rising throughout the life of the trade. A very nice trade.

EUR/USD Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:00 / 18:15
Investment: $100.00
Returns Offered: 81%
Entry Rate / Expiry Rate: 1.39039 / 1.39063
Returns Received: $181.00
Profit/Loss: $105.00 Profit

That was all of the trades which we opened today. But we also had one other trade expiring today that was opened on Wednesday, by accident. The trade was intended to be a standard high/low with an hourly expiry. But in our rush to get the trade executed at the price we wanted to get in at we accidentally hit the wrong button and purchased it as a “long-term” weekly option, expiring Friday, today that is. At the time we were cursing our stupidity, because it would have been a winning trade that day as well, turning an otherwise losing day into a winning one. But it has all worked out well enough in the end it seems.

“Long-Term” S&P Future Trade – High/Low Put Option

Trade Outcome: ITM
Entry / Expiry:
 (12/03/14) @ 19:54 / (14/03/14) @ 17:10
Investment: $100.00
Returns Offered: 75%
Entry Rate / Expiry Rate: 1867.3915 / 1847.1250
Returns Received: $175.00
Profit/Loss: $75.00 Profit

Which now brings us to today’s investment history totals and summary. Thanks to the ITM expiration of that accidental long-term S&P futures trade it wasn’t a bad day overall. Out of the total of four trades, three finished ITM, and only one finished OTM. Unfortunately the OTM trade was a larger than normal investment, but that was made up for by a matching larger investment on the winning side of the balance sheet. Let’s take a look.

daily investments history for 3-14-2014

Daily Investments History Totals For 3-14-2014

Trades Expiring: Three (3) Standard High/Low + One (1) Long-Term
Trade Outcomes:
 Three (3) ITM + One (1) OTM
Total Investments: $500.00
Total Returns Received: $611.00
Total Daily Profit/Loss: +$111.00 Total Daily Profit
Daily ROI: +22.2% Daily ROI

Not too shabby. However, we’ve missed two days of trading this week, and the other two days were nothing to brag about. So on a weekly basis this is probably the worst we have had in a while. I guess we’ll find out in tomorrow’s weekly roundup post. Until next time, trade smart and be lucky people!

Monday 10th Trades | No Tues Trades | Wednesday 12th Trades | No Thurs Trades

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