November Trading with the Geek Recap – Difficult but Profitable!
A look back at November binary options trading with Michael Hodges and the Geek Account.
I have to admit that it was yet another month of difficult trading. I mean more difficult than usual. Over the past few years I have grown complacent with the trend and I can honestly say that the return of volatility took me by surprise. Not surprisingly though is the resilience of the Geek Account. If you don’t follow the Geek Account or have never heard of it let me briefly explain. It is the sum of the weekly tips I give at the beginning of each week. These trades are made each week in my CommuniTraders account and are free signals for you to follow, or comment on or make fun of if you think they are ridiculous. What is not ridiculous is that despite the volatility which is in the market place the Geek Account managed to return 29.5% on investment last month. I had some trouble with a few of my favorite assets but not with all of them.
Due to calendar fluctuations there were four Mondays in November, which means a total of four tips. I made some extra trades this month as well but to see those you will have to check out my profile page and diary in Communitraders. So, of those 20 tips 16 of them were profitable. One of my trades on the USO closed in the money by the skin of my teeth but a win is a win when you are counting your money. Total cost of trading on 20 trades was $6,000, 20X$300, and returned $7,770. CommuniTraders is set up for an 85% profit so results may vary from your account if you are following me with a live broker. Total profits were $1,770, or 29.5%, and are about $200 more than my monthly bills, pretty sweet.
Total Cost Of Trading 20 X $300 = $6,000
Total Returns On Investments = $7,700
Net Profit = $1,770 or 29.5% ROI
Recap Of November Trades
I’m going to recap things a little different this time around. I have been going on a week to week basis but instead I am going to break it down by asset. I think this will be better and easier to understand, especially since I tend to trade the same five assets each week. My top assets traded are the S&P 500, the XETRA-DAX, the USO/Oil ETF, Gold, USD/JPY and when one of those isn’t looking right I’ll trade on Apple and sometimes JPMorgan or the EUR/USD. This past month I pretty much stuck to the top five and only made two trades on other assets.
The S&P 500 – This is my top watched market and most heavily traded asset. I traded this one every week and last month I was 100% correct in my trading. The first part of November saw the index trending sharply following the October correction. The signals were clear at that point, strongly trending, but soon began to change. Divergences appeared and yet the index continued to trend higher, possibly indicating a late stage rally, but those signals never really materialized.
The XETRA DAX
The DAX is not my favorite asset to trade but it is the one I trade to get exposure to Europe. The index is tricky as it is highly susceptible to global news as well as news from within the EU, making it doubly volatile when the pressure builds. November was a month of follow the leader and had this index trailing the US market. I only traded this one 3 times last month but I was 100% in my results, 100% profitable.
I came to gold trading later in my career as a market watcher but have fallen in love with it. Unfortunately it can sometimes be a love hate relationship as it was last month. I only made 3 trades on this one as well, and only had 1 close in the money. My first trade of the month was good, then I lost two in a row on whipsaws so I gave it a rest and moved on to something else for the last week of the month.
I made four trades on oil but maybe should have given it a rest as well. The OPEC situation last month, coupled with supply levels, production levels and declining oil prices, did not play out as anticipated. Needless to say at this point but I did not have a good month trading oil. I made four trades, and I lost 3 of them. The good news is that I am on the band wagon now and have had a few good oil trades in December.
I used to trade currency a lot more but I cut back to mainly the USD/JPY because cross currency correlations are hard to trade, enough said. This month the USD/JPY was driven on good US data, and bad Japanese data, with expectations growing for Abenomics 2.0. I made four trades on the pair and only lost one of them making it a decent month for the currency pits. I also made one trade on the EUR/USD which profited, barely, but a profit is a profit. That win brings my forex totals up to 4 wins and one loss for the month.
My final trade for the month was on Apple. The stock had been trending higher on sales, and holidays, and basically plain old Apple good cheer and I was able to catch a nice little bull signal that took it up by over $5. My expiry was perfect and closed the trade in plenty of time to hold profits, a good thing because since then Apple has been in a nice little correction.