Yesterday I shared with you what happened during my first day of live trading after I took the decision to start trading binary options. Click on the link if you did not read the article. In short, things went extremely well. Too well. I completely expected a turn back for the second day, but not that bad. My account is locked again. This time not because of “winning too much”, unfortunately.
It was very fun to write yesterday’s article. Some people might even think that it was a fake. When I read again the piece, everything sounds like binary options are great and easy, some kind of propaganda to lure newcomers to join and enjoy this bonanza. I cannot really blame the people who had this impression, it sounds perfectly legit. Yes, I have affiliate links leading to the broker less platform I’m using. But you will see that I’m not trying to scam anybody.
Hopefully this article will convince the most skeptical people. Or the following ones, because I guess such terrible day will reoccur. I hope not too many, because this is not very encouraging 🙂
So yesterday was great with a win rate of more than 70%, and a profit of about 5%. I hesitated to trade again in the evening. I did it, and it was a bad idea : I lost two trades. Still I was in the green, which is good when you only start to apply basic analysis to the charts. I explained this by the fact that I was tired. I decided not to trade when I don’t feel fresh. Tomorrow I would try my luck again.
Day 2 in binary options trading: another bad start
Yesterday started with two OTM in a row. Then I won 5 consecutively. Today it started exactly the same with one loss after the other. I didn’t worry much as the first day had shown that things can reverse pretty quickly. Unfortunately it didn’t.
First trade: CADCHF
For my first trade I tried to finally catch a Bollinger bounce strategy for my digital options course. When I look back I still would have made this call. There was a subtle upward trend, price had reached the lower Bollinger band so it was supposed to go up. I chose an expiry of 5 min. But then the price decided to go down a bit, then ranging in a new channel, This lasted more than an hour, then the price started to go up again. Maybe there is a factor that can explain this, or it is just bad luck.
Second trade: EURCHF
It seems I cannot trade successfully a Bollinger bounce. I decide therefore to reuse the strategy that was so successful yesterday. I have the feeling the EURCHF pair is going up. There are some news planned in Switzerland and Europe. So I anticipated that the trend would continue waiting for the news to hit, the first one was planned at 8.45 so I make sure my call expires just before that. As you can see on the chart the price went up, but only after… Two losses, in a row. Ok. Yesterday, in the same position, I “martingaled”: I doubled down my bet to recoup the losses. Did I keep my promise of not doing it again?
Third trade: first binary options win of the day
Although it worked, the fact that I won that martingale trade by less than a pip made me understand how dangerous it can be. Although I won again this third trade, I’m glad that I resisted the temptation of doubling down. The words mean what they mean: I was really tempted. I’m almost sure that if I didn’t write those articles I would’ve done it. And yeah I would have been glad short term, until this martingale system would put me into trouble.
Let’s get back to this third trade. There is clearly an upward momentum on the graph, so I played it. I won it, but it was quite a coin toss on this one. It happens with losses, some not going to complain when it is in my favor.
I finally get my first win. I hope it would be the turning point like yesterday. But unfortunately it won’t be the case. It is completely my fault.
Fourth trade: bad luck?
The fourth trade is a copy/Paste of the set-up I played yesterday and that was very successful. We are on the EUR-USD pair, there is an upward momentum and the signal line of the MACD crossed recently the moving average: sounds like price is going north. I use an expiry of 30 min for this call. Unfortunately this would be the exact starting period during which the price go down for 15 min and then start heading up again. A longer expiry would have made it. An entry point closer to the moving average too. I still see a bit of bad luck here (as we say in French, excuses are made to be used), but it is also my fault.
Fifth trade: game over you idiot
Right after my 4th trade, I set another call, this time on CADJPY. I cannot explain this move, when looking at the chart I see no reason to make up put here. There was a breakout more than an hour ago, now it’s ranging. A put would have made sense on the lower Bollinger band, but definitely not here. Even if the Bollinger bands are not really flattish, the price is bouncing. I needed a miracle to win this, and it was not that far to happen. But I didn’t deserve it.
I reached my daily stop loss limit, so again my account is locked for three hours.
Conclusion of day 2
Today I have learned that not every day is the same. What seems to work one day might not the day after. Because of the market, or simply because your strategy is not that sound. To know if my first day binary options trading strategy is worth something, I would need to try for a month or even more. Yesterday my account was up 5 %, now I’m down 5%. My win rate is 43%, down from 70%. It looks definitely more like a beginner account. What will happen tomorrow? Follow me on Twitter or come back to this website for an update.