Nadex Simple Mistake Cost Me Profits

#1

Today started off well and I must say that I surprised myself.

I was up 50$ profit on the day by 10 AM.

So that being my first real live trade on Nadex with real money on the line you can expect that I was very excited. I was very happy with myself.

So I set and wait for the next trade opportunity and I spot one. So I go in on another trade and im up $54 on 2 contracts. So at this point im looking at a return at $108.

And I have brain freeze. I see that price is moving so quickly. I mean the premiums were moving from 20-60 in a matter of seconds so my mind is racing at this point. Then as all of this is going on I am having a hard time of when to deciding what price point I want to exit at. Not to mention I wasnt getting filled at the price I set even though price hit the targets I set.

So at this point…

-I’m up $50 on the day

-I am up $108 on a trade that I am yet to exit

-I am panicking because price is moving so quickly

-My orders are not being filled

-My mind freezes because I am confused on how to get out of the trade

With all of this going on I end up losing 20$ on my profit for the day because I place an incorrect order.

This was the biggest rookie mistake ever.

One of the main things that killed me in this trade is that I did not keep my composure. When I saw this big profits that I could have in a few mins I got to excited and I did not focus on what was going on.

And I also realized that I was being greedy. There was one time were I was 15 cents away from being filled but I did not Amend the order. Then after all of this I end up placing another trade as my psychology was in the ruins from the past trade and ended up revenge trading.

And here is the mistake that caused these effects.

By simply “not understanding how to place a take profit order” I lost the profits on a trade and lost 20$ on my over all day gains.

Major lesson learned here…

#2

Great lesson to learn:

Go here to learn how to master the Nadex platform and spend 30 minutes watching all the tutorials. Its worth the time.

http://apexinvesting.net/nadex-platform-tutorials/ “http://apexinvesting.net/nadex-platform-tutorials/”

Also, always know your exit on a binary before you get in and place your take profit order the second your entry order is filled.

Watch this webinar to help you on this: http://apexinvesting.net/deviation-profit-target-webinar/

The biggest edge in binaries is knowing they will be worth $50 when the underlying is at the strike Subtract bid/ask spread you are at 47/53 on average Now assume the market is fast, orders are being eaten up, or it misses your strike target by a few ticks and use 43/57

So if i buy (25 or less) - i sell to exit at 43

If i sell (at 75 or more) i buy back at 57

This gives me approx a 1:1 risk/reward or better

Never enter a trade unless you know where you are going to exit especially on binaries as your brain will “freeze” in the midst of fear and greed so have the plan in place before the “thrill” of the live trade starts and follow the plan.

On spreads it is a bit different, i use deviations on 10 minute bars and powerlines on whatever bar type/size i am using to trail my stops (if trading direction ally)

No matter what know your take profit plan before you get in. I have no business getting in if I don’t know where I am going to get out. This rule saves you from a lot of mistakes.

Thanks for sharing :slight_smile:

#3

[quote=darrell]Great lesson to learn:

Go here to learn how to master the Nadex platform and spend 30 minutes watching all the tutorials. Its worth the time.

http://apexinvesting.net/nadex-platform-tutorials/ “http://apexinvesting.net/nadex-platform-tutorials/”

Also always no your exit on a binary before you get in and place your take profit order the second your entry order is filled.

Watch this webinar to help you on this: http://apexinvesting.net/deviation-profit-target-webinar/

The biggest edge in binaries is knowing they will be worth $50 when the underlying is at the strike Subtract bid/ask spread you are at 47/53 on average Now assume the market is fast, orders are being eaten up, or it misses your strike target by a few ticks and use 43/57

So if i buy (25 or less) - i sell to exit at 43

If i sell (at 75 or more) i buy back at 57

This gives me approx a 1:1 risk/reward or better

Never enter a trade unless you know where you going to exit especially on binaries as your brain will “freeze” in the midst of fear and greed so have the plan in place before the “thrill” of the live trade starts and follow the plan.

On spreads it is a bit different i use deviations on 10 minute bars and powerlines on whatever bar type/size i am using to trail my stops (if trading directionally)

No matter what know your take profit plan before you get in. I have no business getting in if I don’t know where I am going to get out. This rule saves you from a lot of mistakes.

Thanks for sharing :)[/quote]

No problem!

I’m just upset because that one costly mistake of not knowing how to exit a trade triggered everything else. I knew why I entered the trade and the market made the move I expected it make. But I couldn’t handle the emotions that overcame me to see $108 in profits. It was a first for me as I’m only 4 months in on all of this.

I never knew it would feel like that.

But moving on now…

Having a take profit plan is something I must incorporate. It will def help me out when I’m in the trade and all that commotion is happening. The only thing that is a little aggravating is getting out early and then you see that you could have made more profits.

I will be purchasing P3 today. I just wanted to see what I was capable of doing on my own. I’m so upset that that one simple mistake caused that to happen. Going fishing for the rest of the day today to get the trade off of my mind.

I have a lot to study tonight!

#4

Trading psychology is huge Don’t be upset Be glad you learned something important before it was a 10k mistake