Nice GC BMX setup last evening. Market was oversold. Set my stop and take profit and went to bed. Woke up early for a news play and was up 50 ticks. It hadn’t reached my take profit target. Got out to take money, but it kept going up, so I left some money on the table. I couldn’t trail the stop since I was demo trading on Nadax. If it were real money, I would have had to trade the future to have a trailing stop.
Then I woke up early at 4AM since I looked at the news last night and some GBP had retail sales announcement at 04:30. I initially tried placing a binary strangle for GBP/JPY. Knowing how this instrument flies when it starts moving, I picked cheap OTM binaries on either side a good distance from the price. I got burned on this the other day on HG for housing starts. Forgot to consider there are 3 options: things are better than expected (market goes up), things are worse than expected (market goes down), THINGS ARE AS EXPECTED (market doesn’t really move). Yeah, housing starts were spot on…I lost.
Well, it turns out, the GBP/JPY was worse than expected and things started to move REALLY FAST. In my zeal, I accidentally exited the SHORT binary, which would have made a nice $90 profit. GRRRRRR. So let’s just say, I have a lot more work to do on strangles and accurate mouse clicks in the heat of the moment.
On the up side. I was able to get into a spread early after the news and made 86 pips. Tried to get back in on the bounce and gave some back. Lesion learned. Don’t get greedy. I was lucky to get what I did off the move. Below is the chart.
Eric
