A quick win on the S&P 500

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 took the position back on the 4th May (position 1 on the chart) after price broke down strongly and broke a weekly trend line that I’d drawn that dated back to the start of Oct 2011.

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.

Trade well!

 

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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