From what I understand. An ATM binary is best. But, on your webinar on April 2nd. You mentioned something about a trade where a person would love to make 20.00 on a 10.00 stock. Concerning a binary where the risk is like 4.00 and the profit is like 96.00? Or, do I have it backwards? Thought I would look for a couple on my demo account.
For the 10 buy on a stock sell at $20 i was referring to how often people are ecstatic about that happening on a stock they own
But they buy a binary for $10 and aren’t willing to sell at $20 even though they are still making 100% they go for the $90 profit and lose 100% of the investment.
ATM binaries give you a 1:1 but have to be sold near the top or held to expiration they can be great for certain trades.
OTM binaries (low risk) are great for news strangles but need to be exited when the price reaches the strike - ie buy at 10 sell at 43 - or sell at 90 buy back at 57 (though i do prefer spreads over OTM binaries as spreads are not an all or nothing like a binary is.
The important thing is to have a reason for what you buy and when you sell (or vice versa) not just do it based on i like the low risk high reward trade as often that trade is a low probability trade unless done on purpose (ie around news)
Thanks, Darrell
i was looking into the swing trading could you explain how once it gets to your point how close out and take the profit
I did a webinar on Tuesday about setting take profits on nadex here: http://apexinvesting.net/bonus-webinars-series-2/ “http://apexinvesting.net/bonus-webinars-series-2/” i cover limit, market, trailing etc…
Also there are more Platform tutorials here: http://apexinvesting.net/nadex-platform-tutorials/ “http://apexinvesting.net/nadex-platform-tutorials/”
Not sure if this is what you are asking for or if you are referring to the actual strategy of when to exit? For swing trading i simply use Apex trades and close at the profit popper on the APEX Pattern Strategy (2 ticks before the A)
