Recap Of January Tips And Trades By The Geek
January was an eventful month. Earnings and economic data were the main drivers of market prices. World markets broke out to new highs and currency prices shifted on the underlying fundamentals of global economics. Overall it was a good month for me. I made some good picks and some bad ones but the good news is that there were more good than bad. I know from my own trading and from what I have read that it takes a win/lose ratio greater than 54% in order to profit trading binary options. My ratio for the month was closer to 64% and provided my a nice little profit for the month.
In January, and I’m including the tips I made on December 31st, I made a total of 25 recommendations. Out of those 1 did not trigger, 8 lost and 16 profited. Out of those trades that did trigger there were three half size positions. In hindsight those half positions were a good idea because two of them were losing trades.
My total cost of trading this month was $2,250. I usually make trades of $100, three were for $50.
21 x $100=$2100
3 x $50 = $150
total cost = $2250
Out of those 24 trades 18 were profitable and one of those was half size.
17 x $170(avg return) = $2890
1 x $85 = $85
total return on profitable trades = $2975
I get a 15% rebate on losing trades from Anyoption. I had 8 losers this month and 2 were half size.
6 x ($100 x .15)= $90
2 x (50 x .15)= $15
Total rebate = $105
Total return = $2975 + $105 = $3080
Profits = (-$2250)+ $3080 = $830
Return on investment = $830/$3080 = 27%
27% ROI in one month is pretty good in my opinion.
I had the most success in two areas, the S&P 500 and the Eur/USD. The S&P 500 is my favorite asset and the one I trade most often. I made a total of 5 tips for the month of January and profited on every one of them. As for the Eur/USD, it is becoming another favorite of mine simply. I also made 5 tips on that trade but only profited on 3 of them.
The USD/JPY is another currency pair I like. That trade has been very bullish of late, even more bullish than I have been. I made 5 tips on this one as well and like the EUR/USD I profited on 3 of them. I thought the 90-91 level would prove to be resistance but the market seems to believe that Japan will keep on stimulating and keep on printing yen.
European and Asian markets echoed the bullish behavior of the US indexes. I don’t trade these as much but I did make one trade on the FTSE and two on the Nikkei. All three profited but were driven by different factors. Europe is in recovery mode despite what recent news events may lead you to believe. The FTSE and other European indexes are climbing on the belief that the end of recession is near. As for the Nikkei, it is being driven primarily by the sliding yen. As the yen loses ground to the dollar and other major world currencies the value of yen based corporations goes up. This trade may go on for some time but with the yen action over the last few days I think it will be volatile.
Apple has proven to be poison fruit for me. I have tried again and again to trade this asset and have been burned by it way more times than I have profited. I made two trades on Apple last month and lost on both of them. This company is still strong, too bad the speculators and the general public don’t agree. I will have to stop trading this asset (I know I have said it before but this time I mean it).
I also made two picks last month based on earnings. One was on JPMorgan and the other on Amazon. Both were good ideas but only one triggered. Amazon moved past my entry target to quickly and never presented itself again and turned out to be my one untriggered trade for the month. JP Morgan performed as expected and provided another profit for me.
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