Has anyone in here ever traded Nadex Binary options? What was your experience like? Did you notice how trades would be out of the money then go in the money for small gains and close completely out of the money, taking your money with it? Nadex claims it doesn't happen but I have experienced it first hand. What are your thoughts on it?
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Nadex Binary options
- Thread starter staystrong
- Start date
Has anyone in here ever traded Nadex Binary options? What was your experience like? Did you notice how trades would be out of the money then go in the money for small gains and close completely out of the money, taking your money with it? Nadex claims it doesn't happen but I have experienced it first hand. What are your thoughts on it?
Binaries (from nadex or anyone else) are for suckers and gamblers. Stay well away. And i say that as someone who has traded binaries since 2003.
The spreads are just too wide. Look how many pts spread you will pay after 10 or 100 bets. No one can beat that overhead in the long run. At best you will come out a tiny bit ahead.
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For entertainment purposes only, go over to YouTube and search for "Brandon Williams binary options". There, to your utter amazement, winning trade after winning trade, taking risks on 3 pip noise moves in 5 min time spans on a dead 3 pm EST AUD/USD currency pair, for example, for 75-80% chance bets of staying in the money (whatever that means on listless, off-hours trading noise).
You'll notice he hasn't shown a trade in over a month. Well, when he admitted that he's got $60K worth of subscribers to his training vids on his website, a very decent side-hustle I would say, what's the point, right?
I like it when you point out the horrible spreads will kill off any perceived long-term odds of having a positive expectancy and then you're the bad person. As this generation likes to say, you're just "being a hater".
You'll notice he hasn't shown a trade in over a month. Well, when he admitted that he's got $60K worth of subscribers to his training vids on his website, a very decent side-hustle I would say, what's the point, right?
I like it when you point out the horrible spreads will kill off any perceived long-term odds of having a positive expectancy and then you're the bad person. As this generation likes to say, you're just "being a hater".
Binaries (from nadex or anyone else) are for suckers and gamblers. Stay well away. And i say that as someone who has traded binaries since 2003.
The spreads are just too wide. Look how many pts spread you will pay after 10 or 100 bets. No one can beat that overhead in the long run. At best you will come out a tiny bit ahead.
You claimed you profit a lot from trading binaries since 2003, now you said no one can beat overhead? Are you among " no one can"? Have you been a sucker and gambler for 14 years?
And you have no Nadex account and have zero nadex trading experinces, whatever you say about nadex have no credits.
The way you talk, suggests you didn't make money on binaries, but instead you are a loser.
This is what you said:
"And what do you know about binary options?
I been trading them profitably since 2003 when they were introduced by IG (parent company of Nadex) in London.
I made six figures trading them back in the early days.
Not so much these days."
Nadex has wider spread, but it is a lot better than any other binary options brokers who only payout 80%. So nadex is the best choice if you want to trade binary option.
You claimed you made big money trading binaries with IG, now tell me is IG payout better than Nadex spread?
Why binary options have wider spread?
Because it is easier to profit than other traditional form of trading.
Suppose you trade emini, if you judge market have 60% probability to go up later today, and suppose you are correct in your judgement, can you profit on this judgement?
No, you can't.
Because you are trading with you whole capital. Market has 40% chance going against you, and you don't know how deep it goes against you. So you have to make stops to protect your capital. Now among your 60% winning chance , 30% are situation that market goes down first and then goes up later. You would stopped out for this 30% chance so they are not your winning chance but you losing chance. So you lose on 70% of trades, yet only winning 30%, despite you are pretty sure market have 60% chance going up. That's why trading is so difficult.
Now binary options are a different form of trading, it is like a betting in casino, if you put 10% of your capital on your bet, you can win like 9%,without placing stops and without risking your whole capital.
So if your judgement on market are 55%+ correct, you would make money, which is a lot better than trading with your whole capital.
There are a lot of traders who can predict market more than 55% correct.
That's why spread on binary options are so wide, because otherwise there would be no market maker willing to take your bet.
However, trading binaries are a lot different from trading emini, because spread is wider, so you can't enter and exit many times, or spread will kill you.
You can't look at next 10 minutes or next couple of hours. You need to think on how will market close( for daily binaries). And usually there are only 1 or 2 opportunities per day, and you need to be a lot more cautious in entering a position.
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Now binary options are a different form of trading, it is like a betting in casino
That was the only bit your post that was correct.
And its not card counting with blackjack its more like playing roulette, you cant win in the long run.
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There are a lot of traders who can predict market more than 60% correct, some can predict more than 70% correct,does it sound like roulette to them?
If you can predict with 60 or 70%, then trade the underlying.
And pay 1 pts spread instead of 10 or 15.
If you are predicting volatility, which can be predicted with 70%+ accuracy, and doing strangles, iron condors, or straddles then you have to pay double spread, so 20 to 30 in spread. That will negate the 70% prediction.