Just a quick post on a Binary position that I took recently on the S&P. I had forgotten about it because I didn’t expect it to move so quickly to target!
I looked at talking a longer term position based on analysis that the Indices may trundle lower over the summer months. With that in mind I looked to take a touch barrier trade for the level 1305, which was based on a series of S&R levels seen across the charts. I also took the position to the end of September 2012 – giving it plenty of time to play out. I was able to get a good price with a 54% profit margin, almost a 2:1 R:R and was happy to take the trade.
One of the enjoyable elements of longer-term Binary positions is the low-maintenance requirement of your positions. Once they’re on, the risk is known and you can let positions just play out. I just take an occasional daily glance in between my other tasks.
Well the S&P (like most other Indices) sold off hard yet I was still surprised that price had hit my target of 1305 just less than 2 weeks after the position was opened.(Point 2 on the chart). I certainly had no inclination that prices would fall that fast or hard (the equivalent of 70+ S&P points).
Trade complete I’ll now go back to scouring the markets for more good trading opportunities.