By Darrell Martin
If this was just an entertaining round of miniature golf, a putter would be the best choice for which club to use. You wouldn’t need to lug around a whole bag of different clubs or have a caddy nearby to hand you a different club for each shot. No, the putter would do just fine.
If every day of trading Nadex binaries and spreads was just an entertaining, easy day of trading where you could pull up your charts, punch a few buttons and be a few million dollars richer, one strategy or system would be enough.
But this is real life. Every day is different. There’s news and there’s no news. There’s slow days, choppy days and days that are a combination of both. There are even different markets that can fluctuate so you may find a choppy day in the indices, a slow day in the currencies and a combination in the commodities. Every day can keep you guessing.
There are signals you can look for on your charts that can let you know what to expect that might happen that day, even that hour in the markets. A very important one to check is volume. Is it exceeding expectations and how often? If actual volume is under expectations more often than it is exceeding expectations, it’s a slow day. It may not be the whole day; it may just be that hour.
Another signal to check is deviation levels. Has the market that you are watching reached a deviation level, either up or down? This can let you know whether or not to place more trades. Sometimes these levels can be broken, but on slow days, the market may just bounce around them and not go anywhere. This can trigger cautious trading, or let you know to use another strategy that could bring profits.
Seasonality is something else to consider. Is there a holiday approaching? Are the “Big Boys” (the market makers or the big traders) on vacation? This can cause the markets to slow down.
You can change the tick size on your charts to possibly locate more valid entries, but be sure to stick to the rules of your system or strategy. It is probably a good idea if you change, for example, your tick size from 6 to 14, to create a new chart with 14 ticks, but leave the original 6 tick size up where you can compare them. Then you can place the trade in accordance with both charts.
If it turns out that this hour, this day, or even this week is just a slow time, this is a perfect opportunity to add some new clubs to your golf bag.
No, I’m not suggesting a trip to the sporting goods store! Take the time to learn some new strategies and perfect them. Try them until you know them so well, they are like muscle memory. You don’t even have to think to execute them. You just do it. You need all the systems you can get to aid you in becoming the best trader you can be.
To learn more strategies and systems to help you in trading Nadex binaries, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 8000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, Forex, stock and options, and gain an edge for successful trading overall.