Hello all,
I just wanted to write a few lines*** (on proof read that made me laugh) that might help someone who is new and trying to make this “work”. I have traded stocks for many years with an occasional small profit here and there and a huge hit to wipe it out more times than I care to mention. I have read a few books and was trading options a few years back and would do ok then get wiped out. Enough about my lackluster trading history. (Trust me this story will go somewhere)
About 9 months ago I found out that binary options existed and was consumed by how to make these crazy gains by risking $10-12 and having $100 a very short time later. I opened a Nadex account and “got lucky” (I agree with Darrell who says this may be the worst thing to have happen) I continued to luck out on some trades and thought “Ok, I must really have a handle on this.” Trust me I did NOT. It was nothing but luck and I would get wiped out quite frequently. I am not talking about taking a hit. I am talking about not having enough money to execute a single OTM binary. I had no risk management whatsoever. I was an emotional trader and would chew my fingernails hoping it would turn around because it had gone against me so severely. (Again, no risk management and traded with no stops)
I would credit my Nadex account with anywhere from $200 to $500 a day and didn’t even think much about it except feel like vomiting after being up a grand and at zero within one hour. I have watched hours and hours of training videos and I finally had a “Aha moment” after returning. I stopped trading for a few months to get a grip on myself. I came back with a clean slate, a clear mind and a very strict set of rules to follow. I want to share with you some of the most important points I have received in the education at APEX. Some of these will be redundant to you if you have watched the videos and very elementary if you have been around a while. These are tips for the new guys and gals so they won’t go through what I have so many times.
Have a solid risk management plan.
-My current RM plan is the 5% per day. This would be huge if you were trading a large account which I am not. Psychologically I can take a 5% hit and be A OK to come back again tomorrow. (Keep in mind I was used to taking a 100% loss and I still came back)
- If I lose 5% I am done for the day. There is no flex in this. My wife is on my team and she is the voice of reason why my train is going off the tracks. She knows the target and will remind me when it is close. She wants me to get in and get out and if I made 5% in 15 minutes that is one more item checked off the list for the day. If I am in a trade that has yielded 5% I will let it run with a trail. I won’t end it early but as soon as it is out of gas I am out. I had one last week that yielded 12% of my total account value. Once it hit my TS it was out and I shut it down.
TRADE SPREADS!
- I can’t explain how spot on Darrell and Mark are when they talk about the lower risk vs binaries.
-Proximity is key. This is something I almost quit trading over. I was following the entry rules and exit rules but was still not profitable. How could this be, I am trading spreads. The problem is I was taking OTM spreads with a 60 proximity. Only risking $9 to make $400? Sign me up. I had watched the spread training videos and knew the ATM spreads were favorable but didn’t realize how important it was. I didn’t have the option of picking the ATM because my balance wouldn’t allow it. If you have ever traded options (and gotten smoked like I have) you probably are familiar with Delta and how your option moves compared to underlying. It was painful to watch that 0.4 Delta crawl along while the time was ticking by. I am rambling so let’s get to the point. Pick ATM spreads and don’t worry about the risk/profit potential. If you are trading following IZSS, Alchemy, SEES… you will either make some money pretty fast or you will be stopped out. You should not be at risk of letting it go all the way against you.
Follow the rules:
-This takes the emotion out of trading completely. (Not the excitement of it but my trade has nothing to do with how I feel about it) It doesn’t matter if I have a gut feeling about it might turn around and I can recoup the $200 loss I am staring at. If the rules say it is good to enter then I do. I trail my stop and attempt to lock it in tight when approaching major levels.
-If it is turning against you follow your exit plan. Don’t move your stops back. (I can’t tell you how many times I have lost profit backing up my stops)
- Plan the trade (know the entry rules) and trade the plan (also know the exit rules)
- Have a cup of coffee and a cigar and watch it go.
Be happy to have any profit no matter what you could have made (This is from my wife)
- If you traded and made $30 over what you had then be happy. It doesn’t matter that you could have made $75. Come back and do it tomorrow. I can’t tell you how many times I have chased losses and lost even more. If you lose cut it loose and find another.
Don’t buy something because it’s cheap.
- Whether it is a shirt you won’t wear of a binary that will have a snowballs chance of making it to even scalp. The instructors have explained it quite well when discussing the probability of anything good coming of it. “It’s only $9.00… true. Just take the 9 and throw it out the window… you will at least get to see that one fly”
These are my unsolicited thoughts and I hope it will help someone who has gone through or is going through similar circumstances. The APEX training has been the only thing in my trading career I have seen that I trust to this extent. It is a community who will help you no matter what the problem. Sometimes I see people ask about the Elite membership cost and is it worth it? At first I was shocked about the price but then I hung around a bit. It is hands down “worth it”. It is worth every cent. If you are new and skeptical… take the FREE training before you sign up for the 14 day membership. (I did it all at the same time and wasted some of my trial time)
I am not being paid to say these things in any way. I am just a believer in what is going on here. This will be the key to unlock my financial freedom and I am thankful I found this place. For the record I have been profitable for 8 of the last 10 trading days which is the first time in a long time (if ever) I could say that.
I hope this helps someone… sorry for the novel.
Cheers,
Scott