Archive for January 11th, 2009

Hi all,

I like Binary betting. I don’t do it as long-term investment nor short one. I treat it as a pure bet with a lot of fun. So I don’t do it a lot, but I try to be near a computer at 20:38. Why? Because I found it the best time to take a bet on the Dow Jones.

What I do is quite simple. I take a look on the last 20 minutes to check what the direction is. If the market jumps fast I will place a bet that between 20:40 to 21:00 the Dow Jones will go down. Before 20:40 IG Index will quote it as 48 sell 52 buy. So I am risking 52 points. If the market went down heavily I will do the opposite. If the market is steady it doesn’t matter which direction you take.

When the clock shows 20:40 it is action time. For the first 2 minutes you can’t trade. It is very frustrating because sometimes the market goes in your direction and you want to take profit but you can’t. Unless the market goes to my side fast, I am looking for 25-30 points profits. Even if I am 30-40 points down I try to stay calm. The last 20 minutes of trading on the Dow Jones are quite crazy and the market can change direction several times. If it went to my side and I reached my target I take profits and wait. So for example if I bought the bet on 52 I will sell it around 80.

But it is not game over yet. If continue the last example the Dow went up more I will sell it around 95 price risking 5 points. I will do it only if there is still time on the clock to change direction (5 minutes and more). Then sometimes the Dow changes direction and 95 points profit plus the 30 I made before.

But of course you have to remember that sometimes the direction is going completely against you and you lose 52 points. You should take this into account before you place a bet.

Good luck!

Down. Don’t be mistaken by the strong opening of 2009. More bad news will come and although the market was indifferent about them during December it is unlikely that investors will continue risk their money.

You can check the options prices to see the direction. At the moment the FTSE100 is 4448. The 4000 put for March will cost you 152 points, while the 4800 call for March is just 109 to buy although the FTSE is closer to the call than the put! This means one thing, the direction is down.

How much down? This is the million dollar question. It is all depends how bad the news will be.