Realistic Expectations Starting Out


#1

Greetings all…

Thanks in advance for a great platform and all the great learning tools. I have been exploring Nadex in demo mode for about a month now and have been at it long enough to know that there is still a ton I don’t know! The videos have been great and reading the forums has been a real help. But…

I am trying to get a handle on moving toward a realistic start point and had a couple of quick questions. My opening account balance will be quite small starting out ($500) so my options seem to be pretty limited. To complicate things, I can really only trade early mornings and evenings except Friday when I can trade generally all day depending on the day. I have explored binaries short and long and realize why the good wisdom here is to start with spreads. For obvious financial reasons I am not able to join the Elite membership yet but I hope too once I have established some track record of at least being able to do this with some limited success. At a minimum, I don’t want to waste my 14 day trial (others have posted well about that) so I want to be as far along the curve as possible before I jump into the $200 a month commitment (bearing in mind that I truly believe the membership to be a great value and absolutely worth it.)

So with that said (and thanks for your patience) here are my current questions…

  1. Is trading spreads with such a small account balance even possible starting out with the goal of at least covering my $200 a month Elite membership if I am trading about 10 hours a week.? It seems a stretch to me since my account would limit me to one trade at a time and the spreads seem to move so slow.

  2. And what is the “average account balance” you guys would really recommend for using your system in spreads for a part time trader (you seem to stress the IZSS system starting out right)?

My goal frankly is replace some part-time income that I know I will be losing in the fall. So I am hoping to average $50 an hour considering both my elite membership and trading fees. But I am not sure if I am setting myself up to fail with such a small account balance to begin.

Well, sorry for the long post but I am taking this very seriously and want to continue to learn as much as a I can before I begin. I am willing to be patient and break even over the summer (for example) if there is a real chance of doing better than that long term.

Thanks in advance for your help and thanks again for an amazing platform.

Joel


#2

Hi and welcome!!

While $500 can get you into most trades, you have to take into consideration losses. A general recommendation is to stop if you are down/up 5% of your account per day. With a $500 account, that would basically put that number at $25. Basically being one loss… You dont need a huge stop loss, but you do usually need to allow the trades some wiggle room at least.

Smart choice on deciding to focus on spreads first, they arent as punishing as binaries.

If you are trading spreads purely from a directional standpoint they will move as slow/fast as the underlying market itself. If the market isnt moving… chances are the spreads arent either.

Ive had trades last for 9 minutes to trades lasting a few hours.

You might want to consider starting with $1000. The more cushion the better… If you do get into an unlucky streak with a few losses in a row, you know you will still be able to trade comfortably with worrying if another loss will break your account.

IZSS is pretty much Apex’s “flagship” system. And that is generally where people are encouraged to start. But check out the other systems as well and see what one works the best for you.

Your goal of $500 a week is possible, but it depends entirely on the movement of the markets.

Another possibility to look into, is opening a Forex account and trading like 5k (0.50) lots That would give you more wiggle room as well.


#3

Thanks so much for your response. I have been leaning toward being more patient and saving up more money so I can start with 1K as you suggest. Like most new traders, I think I am just anxious to move forward.

Thanks again for the time and the advice!

Joel


#4

Anytime and you are welcome

Totally understandable

As you are saving up the extra money still make sure you go through the various systems and decide what one you like best, this way when you are ready for the 2 week trial, you can just hop in and demo it. And then afterwards go live and profit! :atm: