Forex binary on IG PureDeal Journal

Hi folks,

I decided to open this thread, after letting all know that I have been negative in forex spot trading for the last 10 yrs., well almost!

Never knew about forex binary until yoda mentioned it to me weeks ago in my previous thread. Fantastic stuff indeed.

To understand it, here is the best link out there: http://www.igmarkets.com/fx/nadex-forex.html

So I did open a $25K demo account about couple weeks ago. Had it up to $65K, and now with my last bets, managed to end this fantastic run down to $29K!

Well, not bad after all...still 4K ahead

So looking for the next best bet for eurusd by the end of NY session tomorrow at 3PM EST...will post my bet later.

You clearly need to work on you risk management skills.

Yes indeed. I am sort of kamakazi when it comes to trading

Finally got my live trading account with IG open, and ready to trade live these fantastic binary stuff...haven't been trading the demo anymore, since in this type of trading you really need a live account with no more then couple $100's to get your feet wet.

I have found my supplemental income.

Wow! Love it...got 4% added to my account with only two bets lasted no more than 4hrs...eurusd>1.3880, eususd>1.3860

CT,

So after 10 years of losing at spot forex, you now think that because you just had a good run demoing binaries you have found an alternative income.

Well I don't want to be a party pooper and I hope it works out for you, I really do.

But can I humbly suggest that you should look at your trading style. You mentioned earlier that you are a Kamikaze trader. To me that is the problem you need to address. The markets love suicide traders - and they always get killed. Doesn't normally matter what they trade either.

Indeed! By now, I should know what is the difference between demo and live trading...these binary stuff are great instrument for us kamakazie traders. It forces you to manage your risk.

I am sitting at the gambling table which I know that my only edge is my quick analysis of the market...in binary trading, sup/res levels are the key.
So here is my edge...now I see a bet which tells me that euro within 3-4 hours, will stay above certain levels...I will buy (offer) that bet. How great you can reap profit this way...takes a lot of useless emotion out of you.

I will post my % +/- as often as I can in my journal.

Only to keep track of win/loss here in this journal:

Hey Candletrader
I,ve only been using binaries for a while, as a sideline. They can be pretty profitable. I haven't had a loser for a couple of weeks, and most days you can get 30-50 pips.
One good thing is your loss is known beforehand.Of course, in real trading you need a stoploss.I've found the best time to take a trade is in the pm.
good luck, look forward to seeing your results.

btw i'm long dec copper, >386, for 6pm gmt expiry.looking good so far, now up to 87.

Yes Golfer...binaries are great.

Today was a very mixed market for euro, so I only made one bet to buy eurusd > 1.3960 (3pm) at 90 just an hour before expiration...eurusd closed at 1.3971 at 3pm...the profit was $10 per contract...another Win for today...good luck with your copper trade.

Hey candletrader, i agree the euro, and in fact all fx mkts didn't look great today.
The copper closed for a profit of 24, and i'm waiting on dec wall st 30 > 11140. Closes 9'15 gmt, but looks good, now at 92, so hopefully should be a profit of 16.

[The copper closed for a profit of 24, and i'm waiting on dec wall st 30 > 11140. Closes 9'15 gmt, but looks good, now at 92, so hopefully should be a profit of 16.[/quote]
Well, that managed to turn around pronto, closed as a loser.
No problem, i hadn't had a loser for a couple of weeks, so it was overdue.

Yes, it was short and sweet...hope your loss didn't take no more than 20% of your fund.

At the moment I am looking to grow small...so far 6.2% increase in two days trading is not bad.

Watching this bet at the moment...would you risk ~$5k to make $500 by 3pm tomorrow:

I have four major support levels for this pair:

1.3917
1.3869
1.3827
1.3788

Currently at 1.3926...

Consumer confidence report at 10AM, but for euro to close below 1.3760, it must pass through all those 4 major levels..this must be a very high probability bet. I took it.

I think you should be ok with that. Price is currently still around the 1.3930 level, so you'd have to get a pretty violent move to get down to the strike price.
Good luck with it.

While you're probably going to be okay, I really think that this sort of betting is unsafe and you will end up losing your account. Your risk return is rather crap for these sorts of trades. You're looking at 10:1 risk/reward. Seriously, it's rubbish.

I'm sure their modelling is far above any predictions you or I would care to make about this market. If it wasn't, they wouldn't be making the market. Remember, IG Markets is a bucketshop. They make their own markets, based on their own models. The only time you might want to use this sort of exotic derivative is as insurance against another trade. However, with that sort of rubbish pricing it's not worth it.

Edit: One thing to remember is that you can always trade out of this position. If the market moves higher and you find yourself in the black, might I suggest trading out of it. Also, these binaries end at either 0 or 100. Next time, perhaps look for ones where there is a discount on where you expect the market to go.

By that I mean, look for pricing that's below 50, but where you expect the market to have a better than 50% chance of going in your favour.

As the price on that binary option is at 88, that means that IG thinks there is an 88% probability that price will stay above 1.3760 by tomorrow. Hmm.. perhaps there is a use for these binary options for those of us who trade spot. Might be a good indicator of market sentiment as per IG Markets' modelling.

According to my IG platform, you can close out your position now at 96 (which is basically 100 before paying their spread). Could take this and run, or wait a little longer

Yes, Mindsphere, r:r ratio is terrible with the binary options, but then again you pay for it with high probability trades.

I also bought another bet that eurusd will not close above 4040 at 14.5, before London open, and now is 3 (+11.5 profit so far).

The way I pick the size of my bets, I make sure that Max Loss is no more than 10% of my total account size per bet, so if I loose a bet, it wouldn't be a total loss!

Also if I get my account doubled, half of it would be withdrawn immediately.

Another 2 Wins...slowly but surely.

After 4 days of binary trading: 9 wins 1 loss