So these are questions that I have been avoiding for a while and just figured it is normal… but, i’m really trying to understand what is happening and if I am doing something wrong.
- When I place a Spread trade on Nadex, I can be up 15-20 ticks, but if it reverses on me just a few ticks, I loose all of my profit, sometimes more. Can anyone explain this? For example: I place a NTM trade on YM , Market moves in my direction 20 ticks, reverses roughly 5-8 ticks, and now I’m down more than where I started.
Here is a screenshot from earlier today as a 2nd example https://www.screencast.com/t/E4X1Q0P7B5Gg
- When I enter a NTM spread trade on Nadex, most of my trades start around -$8.00 P/L and it takes a lot of movement just to get into profit. Am I not selecting the right trades or is this normal? I try to only enter NTM trades so that I can get tick for tick movement and closest to $0 P/L when I enter the trade… Am I not understanding this correctly?
Any help is appreciated. Thanks in advance!