In my limited time with Nadex (and even less time with Apex), I have been profoundly profitable with my Demo Account but profoundly less profitable with my Live Account. I have several observations about my experiences:
1) One needs at least $1000 to start trading live on Nadex.
A large enough account is needed to weather the losses until one starts making profits. This is probably why many newcomers do better with Demo than Live.
Is this correct, or can anyone grow their account from as little as $100?
2) Demo Account is not the same as a Live Account.
The Demo Account is a valuable tool for learning the Nadex system and for trying out strategies. However, the profitable opportunities in a Demo Account are not available in a Live Account. In Demo, I’ve had FREQUENT “Once In A Lifetime” trade opportunities that have made me GIGANTIC profits. These fantastic opportunities are NEVER in my Live Account. I find this EXTREMELY misleading to new members in Demo who want to go Live.
Any thoughts on this?
3) I have done better with Binaries than Spreads.
I know, starting out with Binaries is NOT a good idea for new traders. I did the Spreads because that was the professional recommendation for new people, but the majority of my losses have come from Spreads. However, with me, binaries have worked. Although it’s a slower grind, my best wins have involved getting Binaries far above or below the current Indicative Market. I still believe in Spreads, but I have to state my experiences with them.
Is there anything wrong with this observation?
4) Iron Condors/Butterflies seem to be more profitable than Straddles/Strangles in the long term.
Although Iron Condors/Butterflies require higher upfront money that result in smaller profits (substantially smaller with Spreads) and potentially bigger losses, the overall profits from the Iron Condors/Butterflies are fairly consistent.
Although Straddles/Strangles require less upfront money and can potentially make substantial profits, I find that the profits that are earned frequently do not cover both sides (mainly with Spreads), which result in losses.
Are my observations here correct? Any way to improve both methods?
5) Strategies do not consistently work.
I’ll start using a strategy that will consistently work for me, and then that same strategy will start to fail.
Do we stay with a particular strategy that we master, or do we master multiple new strategies?
6) Profits are taken too early, or early profit opportunities are missed.
Sometimes, I’ll set up an early take profit order that is never reached, potentially causing a loss when the market moves in the opposite direction or providing a smaller profit at expiration.
Sometimes, out of fear that a market is moving too slow or will reverse, I’ll take an early profit, only to see a bigger profit would have been made, if I kept the contract longer.
When does one know to take an early profit?
What set number should be used in a take profit order for a Binary and a Spread?
Any advice on these observations will be helpful.