Trading Blogs

I wanted to point out a trade that happened today that a true expert might have turned into a winning trade but for me it was a losing trade. Hopefully you can learn from my mistake.

In the picture you will see a red arrow indicating the sell from the top of the Bolinger Band. This trade went well from the get go as it went down lower the next two bars. However, on third bar a Dogi formed. A dogi is only as strong as the last bar. In this case I did not think it would be so strong. In hind sight I wish I had moved my stop to break even after the dogi had formed. You can clearly see that after it did price jumped up rapidly leaving me kicking and screaming early in the day. 

ProfitBinary Trading Alerts for 6-13-2012

BUYS: 0 Alerts

SELLS:   1 Alert

View the Trade Alerts after the jump...

NOTE: 40 point alerts are 2 unit trades, 30 and 20 point alerts are 1 unit trades.

BUY ALERTS:

None.

SELL ALERTS:

ProfitBinary Trading Alerts for 6-12-2012

BUYS: 0 Alerts

SELLS:   2 Alerts

View the Trade Alerts after the jump...

NOTE: 40 point alerts are 2 unit trades, 30 and 20 point alerts are 1 unit trades.

BUY ALERTS:

None.

SELL ALERTS:

Welcome back from the weekend. In the news Spain is getting bailed out but uncertainty still looms in Europe creating an unsteady market. Today I want to discuss three trades that I made today.

1.       First trade was a buy at the start of the light blue line. You can see that it reached the bottom part of the Bollinger Band and steadily went up. This trade was quite profitable. Once it reached the top of the BB(Bolinger Band) I closed out looking for a good entry to sell.

2.       Trade number did not turn out so well but it was a valid trade so I can't be upset about it. I exited out of trade one and sold at the top of the BB. You will see the red line climb up and price hit my stop loss. As I have said before BB's are not completely accurate and had I gotten in later it would have been a profitable trade. Sometime it pays to be patient.

3.       Trade three was again a losing trade but I want to explain how this was still a great trade by managing risk. Repeating myself again, great traders know how to manage their losses, that is how they stay profitable! On this trade I was never really ahead. Realizing that and having every bar work against me but one I started to manage the trade with my stop loss. Once there was a green bar I moved my stop to the bottom of it. This reduces the risk of losing more. Once the next bar formed which ended up being red I moved my stop to the bottom of it. Overall, I assured myself minimal loss just in case. It was great that I did because as you can see shortly after the market dropped dramatically. Management saved me a lot of money today and actually kept me profitable on the trade. Had I not managed this trade effectively I would have had a losing a day.

Hope you are starting to learn how to manage your risk. I am still in the learning process as well but I keep getting better each and every day! See everyone tomorrow! 

ProfitBinary Trading Alerts for 6-11-2012

BUYS: 0 Alerts

SELLS:   3 Alerts

View the Trade Alerts after the jump...

NOTE: 40 point alerts are 2 unit trades, 30 and 20 point alerts are 1 unit trades.

BUY ALERTS:

None.

SELL ALERTS:

Today was a day of good setups that just did not work out. This can happen and it is important to maintain your composer and just stick to your strategy. Below is a good trade that overall I should have broken even but ended up losing just a little.

You can see I got in at the top of the Bolinger Band where the red solid line starts. This was a short or sell trade. Right in the beginning the next two bars went against me. This should have been a red flag for me to start managing my risk on the trade. I left my stop loss fairly high throughout the trade until the end when I moved it down and got stopped for a small loss.

Once the two bars went against me I should have moved my take profit to essentially a breakeven point. That would have covered me from incurring any losses. The trade was good and valid but as the experts would say, beginners must learn to manage their risk right away. 

ProfitBinary Trading Alerts for 6-8-2012

BUYS: 0 Alerts

SELLS:   0 Alerts

There are NO ALERTS on the scanner for Friday, June 8th.  This system relies on trading only valid plays, and we will not recommend plays that we won't trade ourselves.  There are no valid plays for Friday.

ProfitBinary Trading Alerts for 6-7-2012

BUYS: 1 Alert

SELLS:   0 Alerts

View the Trade Alerts after the jump...

NOTE: 40 point alerts are 2 unit trades, 30 point alerts are 1 unit trades.

BUY ALERTS:

SELL ALERTS:

None.

ProfitBinary Trading Alerts for 6-6-2012

BUYS: 9 Alerts - ALL 40 pt alerts

SELLS:   1 Alert

View the Trade Alerts after the jump...

NOTE: 40 point alerts are 2 unit trades, 30 point alerts are 1 unit trades.

BUY ALERTS:

SELL ALERTS:

Today was a good day of trading and I was able to avoid any mental lapses. Overall was up on the day but not quite like yesterday. I want to talk again about Bolinger Bands and show you a good example of how they may not work in your favor.

If you notice the first blue circle(point 1) was my initial entry point for a short trade. It was at the top of the current Bolinger Band (BB) and did actually pullback down a little bit. I was still showing that a sell was still valid and decided to stay in the trade and actually shorted again at point 2.

After point two again price dipped down but not as far as I thought it would go. Price was continuing to form new highs so I started to manage my trade with my stop loss. I typically will start with a 2 point stop loss. I moved my stop the high of each previous bar eventually getting stopped out at point 3. Of course you can that the next bar price drops straight down.

Another indicator I want to show was the formation of a dogi. The dogi is formed at point 4. Dogi's are only as strong as their last bar. The last bar was a nice big green one indicating that after the dogi price will possible go down, which it did.