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  1. #1
    Active Member

    From zero to 100/day ASAP - My trading diary !!!

    Before April 4th, 2014 I had absolutely no experience trading.

    My background is in marketing and data analysis, and I'm trying to apply techniques and concepts used there, in to trading binary options.

    My strategies are based purely around technical analysis, and for now I've decided I'm only going to be trading the EUR/USD. Whether this is true or not, I've decided not to trade anything other than currencies as I believe everything else is too dependent on what is happening in the news and it's not something I want to keep up with. I know this is true for currencies too, but based on my technical analysis I'm seeing more consistency here.

    To a degree, I'm ignoring fundamental analysis completely.

    My first goal is to get to get to 100/day in profit.

    Even though it's not going great so far, I still think it's an easy goal especially once I build up my capital. I've deposited what I have and don't intend to deposit any more, just raise my capital through winning trades and then start making higher value trades to make it easier to reach my initial goal.

    Today I've made 3 trades and lost 3 trades.

    Not a good day.

    =============

    A few specifics...

    I use TopOption as my broker. I don't recommend them or not-recommend them. They seem to be ok, but as a newbie I don't really know any better, and to be honest, their website and platform piss me off sometimes. It's slow, their website uses a lot of resource, and sometimes their charts just don't fricken work! I'm sticking to it for now, but also keeping an eye on Trader World. If anyone has any experience with Trader World I'd be pleased to hear about it.

    In total I've deposited 300.00 to TopOption.

    Money in my TO account plus money I've withdrawn = 342. This includes the three trades I lost today.

    Of my last 50 trades I've won 28 of them. 56%.

    Pretty damn crap.

    This week, and since a refinement on my strategy, I'm 15/25. 60%.

    Not great either.

    The trades have been of various values but for now I'll pretty much be sticking to 30 trades.

    I'm going to try and get my win rate up to the 75% mark, and if I execute my strategy properly I'm pretty certain I can do that.

    It will be tough to get to 100/day on just 30 trades, but if I can quickly build up my capital and start executing higher value trades, it shouldn't take too long overall.

    Without fundamental analysis, you may doubt this is possible. But hey, I'm here to prove it can be done.

    I hope to update this fairly regularly. And with mostly positive news!

  2. #2
    Senior Member dorrian's Avatar
    Hi AnalyticalTrader,

    That’s great that you decided to write about your trading progress and post commentaries regularly here! Also it is very good result for a fresh new trading venture to achieve 60% win rate. I wish you to improve it even further and make it really consistently growing business for you. I lost more than 6 month till I achieved results better than 65-70% but you can be better trader and start doing it much faster. It is a matter of time and experience to gain this level. I also believe that it is possible to have good results only with technical analysis without fundamentals, but I am using also fundamental data and news to feed my trading picture and this definitely improve my results.

  3. #3
    Active Member
    Hey Dorrian,

    Thanks a lot.

    If you discount all the trades I made on my first 100 'test' budget, my win rate is actually better than 60% but I thought I'd low ball it to help keep my mindset right.

    Actually one of the reasons I've decided not to bother with fundamentals is that if I can achieve a near 75% win rate without it...and I'm sure I can...then adding fundamentals to it then will only enhance my win rate. It's also difficult to master two things at once, so I'm focusing on the technical side which is where my strengths are anyway.

    I'm quite an active trader looking to make multiple trades daily so check back often. It would be great to get your feedback and any tips.

  4. #4
    Senior Member Deanfx's Avatar
    You are very right ActiveTrader! It is better to master one thing first and than go for the next one. Thus you will complete better technical analysis before moving to fundamentals. It will be nice if you share with us your win rate during time. By the way what is your favorite instrument to trade?

  5. #5
    Active Member
    Hey Deanfx, I almost exclusively trade EUR/USD. The only others I have done recently are AUD/USD and Silver. But haven't done either in a while.

    I only really look to other assets if I don't see enough good trading possibilities for EUR/USD for any given day or week.

    I seem to have better luck and a better understanding of EUR/USD and its behavior, and it also pays 85% throughout the day so that's why it's a current favourite.

    Silver's been an interesting one that I might look more in to. I think there's potential to get the odd win here or there.

    ==========

    I've been pretty busy today so only had time to make one trade and there may or may not be an opportunity for another in a short while. I won the trade I made so my stats for the week and to date look like this:

    26 Trades

    16 Wins

    9 Losses

    1 ATM

    Win rate: 61.5%

    Learns:

    The week started off promising but ultimately ended quite disappointingly, especially after Thursday's 0/3. To an extent, my strategy is constantly going to be refined I know that much. However what's most disappointing is my poor execution of my strategy and the lack of discipline when I know I should have passed up on some 'riskier' trades. (Notably on Weds when I started 3/3 and got greedy and lost my next 2 trades that I shouldn't have taken.)

    The 3 Thursday losses I was somewhat confident in, although I hadn't made a single trade that day and me wanting to just execute some trades led me to making rushed decisions that I should have taken more time on or just passed up completely. I actually had a lack of information when making those trades which is poor on my part.

    A 61.5% win rate leaves me profitable for the week, but just barely. I could have and should have swung at least 2 more trades in my favour but hopefully I can take these learns and correct them for next week. And the trade that finished ATM obviously could have swung either way. It gives me hope for next week where I hope to achieve a minimum 65% win rate, and as close to the 70% - 75% mark as possible.

    Also, there were about 4 or 5 trades I missed having a look at because I was busy. Too bad...

  6. #6
    Active Member
    Just read this in the School section. Resonates with me and worth a read: http://www.binaryoptionsthatsuck.com...t-worth-money/


    The Secret behind Binary Options Psychology: Skills that Worth Money

    Nosce Te Ipsum – Know Thyself?!


    At the time of writing this article I was in a short GBP/USD trade with all my strategy conditions fulfilled: downtrend, retracement, rejection candles signaling the end of the retracement and trend resumption. What do you know…it was a loser. Well, I guess we have to accept losses, don’t we? After all it is part of trading and I still haven’t met a trader who always wins. So losing is not the problem, but coping with it and finding the inner strength to remain calm and composed under stress. This is sometimes easier said than done because all sort of questions start creeping into your mind and I hope this article will scratch the surface of trading psychology and will help you keep your emotions under control.



    Skills That Don’t Suck and Must Be Mastered

    What we must first understand is that our mind doesn’t react under stress the same way it does in normal conditions. In other words, once money is involved, we start to see things a bit differently than under normal circumstances. To overcome this we must acquire a very important skill:

    Discipline

    Once we become disciplined traders, we will not allow emotions to take over and we’ll always follow the trading plan. One of the first steps to becoming a disciplined trader is to stick to your decision made before you entered the trade. Why stick to that decision? Because before a trade, your logic is not affected by any emotion, you are in a neutral state. After the trade is placed, all emotions and questions start rushing in: fear of losing, fear of failing, greed, uncertainty. A disciplined trader will know better than to make decisions while he/she is in a trade and will also follow the trade plan, the strategy and the money management he/she chose to use.


    Patience

    Is another skill that definitely needs to be mastered. More than once I found myself jumping into a trade before my strategy gave a good signal, and before all the conditions were fulfilled; almost every time this happens, the trade goes against me and closes Out of the Money. To make the long story short, if the strategy you are trading requires 2, 3 or 10 conditions, wait until they are all fulfilled and only then place the trade. There is another kind of patience involved: the one related to understanding that wealth from trading will not come overnight. Yea, I saw all the movies about Wall Street, millionaires and hundreds of thousands of bucks made every 5 minutes, but we are not those guys…well, at least I’m not. If we want the slightest chance to get there, we will need patience to execute our plan and slowly but surely the account is going to increase. If you believe you will achieve this kind of wealth overnight, you are mistaken and the market will punish you for it.


    Peace of Mind

    Don’t worry, this in not turning into a Yoga class and when I say “peace of mind”, I’m referring to the fact that you must accept a loss before going in a trade. In other words, prepare for the worst and hope for the best. Once you accept that it’s possible to lose the money invested on that trade, you will have peace of mind. By assuming that once you pressed Call or Put, you already lost whatever sum you invested, you remove a lot of the emotions involved. What else can go wrong if you imagine that you already lost the trade? Maybe it’s a weird way of thinking, but for me it works. Try it.



    “Skills” That Suck and Must Be Avoided

    Fear


    Is probably one of the first feelings that traders must learn to control. Trust me, it can destroy a good strategy in minutes and an entire account in a short while because it is the trigger for other negative feelings. The fear of losing money can lead to missed opportunities, in other words you don’t take a trade because you are afraid you might lose. Ok, you don’t take a trade today, you don’t take one tomorrow or the day after, but what if those trades would have expired In the Money? The answer to that is:

    Frustration

    Starts to creep in. “Ah, my strategy was good, I should have followed it. Crap! I missed 4 trades that would have brought me money. I’m not gonna be scared anymore.” …and you start trading. But because you are frustrated by the missed opportunities, you jump in the market without following your plan to the letter because you want to somehow make up for those missed profitable trades…you are now…

    Greedy

    Now you want to trade more frequent than usual, maybe even switch to shorter expiry times to be able to place more trades but you forget about your tested and proven strategy. All discipline goes out the window, you rip your shirt open, turn into the green Hulk and scream “Come on you stupid market, I’m better than you! I’ll show you how good I am!” When that happens the market will always win; it will chew your account and spit it out, it will snap it like a twig…obliterate it…destroy it. You get the picture I guess. So avoid those feelings at all costs.



    Wrapping it up: Skills Worth Money

    There is no secret recipe for learning to control your emotions and for becoming the perfect trader. For that, you have to reach deep inside, find your balance and most of all, you have to know yourself. Ok, ok, I know I sound like Mr. Miyagi from “Karate Kid”, but I’ve been through all the stages that I talked about, I’ve blown accounts and lost money. So I’ve learned the hard way to control my emotions and maybe after reading this article, although it’s just the tip of the iceberg when it comes to trading psychology, you will avoid some of the mistakes I made. Don’t let the Hulk out!

  7. #7
    Specialist Member LesterK's Avatar
    Hi Analytical trader,

    I think you can decrease your trade number. It can seem counterintuitive but it will help you to avoid most of these not so good trades that you have opened. If you place something about 10 trades per week you will see much better numbers in terms of wining percentage. Also don’t forget that 20-30 trades are not representative of a strategy. If you ask our friend Seasalt you will see that he tested his strategies on more than a thousand trades backtesting. I don’t think it is necessary such an extensive backtesting but you can trust on your strategy only after about a hundred consistent trades. This is my view at the moment. Keep updating this thread. It have been very valuable to all of us!

  8. #8
    Active Member
    Hey LesterK,

    Thanks for that. Decreasing trades is definitely something I was thinking too...I mean had I not taken those two greedy trades late on Weds I would have been much better off for the week, even with the 0/3 Thursday.

    My strategy is actually a refinement over the course of more than 190 trades...no where near the thousands that Seasalt has, but they are all live trades which can perhaps make a difference.

    I'm definitely going to pass up on the more 'riskier' trades next week... Too cocky for my own good.

    If I go 3/3 at the start of any given day I'm also going to stop trading for the rest of that day.

    That, and with better execution, I hope to see an improvement with my win rate.

    Question.

    I'm in the UK and Monday is a bank holiday. I'm trading the EUR/USD, and I believe trading will be as per usual, but has anyone seen any significant trend differences when trading on a UK bank holiday? Perhaps it doesn't even matter as I'm not trading GBP...

    I'll look back at my data for anything unusual...

  9. #9
    Master Member SeasaltMcFish's Avatar
    It really does matter if you test live trades instead of backtesting. Market conditions are live and you will be more honest about your setups too. However, sample size still matters a lot!

    Having a lower sample size doesn't mean your strategy sucks. It only means you can't be sure about your strategy yet. Luck can do strange things! Found that out as a poker player.

    Optimizing your strategy is very good, but also carries a risk: you could be cherry picking your setups. The only correct way to optimize your trading is by first writing the conditions and then start following them in back testing, demo mode of live testing. Don't forget you get your optimizing idea by looking at your charts, so the section of your chart you're looking at to find your strategy, is not useful to test it. Choose another month! The month you looked at will always be positive because it's where you found your strategy, thus giving a bias to your test results.

    Good trading!

    Sea
    Last edited by SeasaltMcFish; 05-23-2014 at 10:36 PM.

  10. #10
    Active Member
    Yeah, I'm definitely playing out this strategy much longer to see if the consistency is there. I was just looking at how my strategy has changed over time and the difference in results and you're definitely right about it being risky. Especially as I've done a poor job at making detailed notes about the subtle changes I've made and their effects! I'll need to sort this out...

    All in all though, most of my frustrations come out of poor execution and making trades when I know I shouldn't have.

    ==========

    Interestingly, I've just noticed it's memorial day in the US on Monday too...

    I've also just finished reading an amazing article on the main site. If you're a newbie who trades currencies, this is a MUST read: http://www.binaryoptionsthatsuck.com...es-currencies/

    The economic calendar on investing.com looks pretty useful to use alongside it too... http://www.investing.com/economic-calendar/

    Because I trade the EUR/USD I've set a filter up for the next two weeks showing events related to the US and Euro Zone that could have a moderate - high volatility impact...from the article I just read the lesson learned is don't trade in and around the time of these specific economic events!

    Would not have had a clue before reading that article, and I've definitely experienced what I thought was some unexpected volatile EUR/USD behaviour in the past...

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