Hello traders, hope your day was great! I’ve been spending quite some time studying for my review at work, it’s a bit like an exam so I haven’t been looking at the markets too much, that’s why I only posted once last week. Anyways, I placed four trades today, but I was only 2 ITM. I lost two of those trades because I failed to follow my rules, simple as that. One thing about trading is you may get bored after looking at the charts for hours, but I tell you, you MUST be alert and ready at all times that you are binary option trading, because it will bite you in the rear if you do otherwise. I will go over my losing trades just to give you an idea of what I mean by “alert” trading.
My first trade was a great trade, and highly probable according to my strategy. Price was in an overall downtrend (courtesy of the 365 and 180 day EMA), so I waited for a setup in the direction of the trend. After price was going down after the touch of the 365 day ema, I waited for a pullback, and it just so happens there was one that happened and touched the 20 EMA and found serious rejection at that level. The next candle was showing a spinning top and there was some fighting going on between the bulls and bears as to where price would go next. Once the next candle formed, I waited for price to turn bearish and break the low of the previous candle before I entered. For more confluence I also have the Value Chart in my favor. This trade was ITM by about 2 pips.
My second trade wasn’t a good trade simply because I didn’t follow my rules, I didn’t wait for the candle to close and because of that, I didn’t see what was going on. What I thought was happening was price was breaking below the previous support level, but really it wasn’t, and I found that out after my entry candle closed. This trade lost only by a tiny margin, but it was by no means a high probable trade. Also to back this up, the Value Chart was at the bottom, also signaling a possible correction was imminent.
My third trade was on AUD/USD and was also a bad setup. I weighed too much on the pin bar that formed, and I ignored the fact that price was no longer trending up since the recent high failed to make a higher high than the last swing. I entered this trade and immediately after price plummeted and was OTM by a large margin. On top of it all, the Value Chart was at its peak and signaled an overbought situation, and price was so close to the 20 EMA, there was no room for a rubber band effect. These types of trades are discouraging, but you must move on and look for more setups. My fourth trade with AUD/USD was based on the fact price was in a large bearish move (momentum), which broke below previous support, Value Chart was at its peak, and price broke though the M3 line you see on the chart, and since I realized from my last trade that price was now in a downtrend, I waited for a setup in the direction of the trend. It was ITM by about 1 PIP.