Important Note: Please make sure to read the Disclaimer at the bottom of this blog
But First, Why Trade the Markets Now?
By Cam White
Do you remember the days when you could put money into a savings account or CD and actually see interest accruing in your monthly statements? Those days are gone, at least for now. If you go to Bankrate.com, you can easily check the interest rates for banks across the country, and it's not pretty. Major Banks are paying .01 percent interest on savings. One Year CD rates are 1.1 percent. Heck, the 2014 rate of inflation is 2.1 percent. So if you have money passively earning interest in savings, you're actually losing money when you adjust for inflation. To me, it's like a leaky faucet that needs to be fixed.
My Experience Opening a Free 2-Week Nadex Demo Account
Getting started with a Nadex demo account was a simple, straightforward process. All I had to do was supply my name, email and telephone number, and the demo account was created.
Once I launched my demo account, I had complete access to the Nadex trading platform, funded with $25,000 in play money. I had the ability to use Nadex to trade Binary Options and Spreads on all of the major indices, major commodities and many currency pairs. I chose to keep things simple, and to focus on trading binary options. As I mentioned in my last blog post, binary options are a simple "yes" or "no" proposition. You're either right, and in the money, or you're wrong and out of the money. I will give you a more detailed example of placing a binary option order in my Trade of the Week below.
|The Nadex Trading Platform. Image Courtesy of TradingPub|
Opening a Live Nadex Account
I got a call from an account representative for Nadex. He was very professional and low-key. He asked me about my experience practicing with Nadex, reminded me that an account could be funded for as little as $100 and that the application process was simple and straightforward. He was right. I went online filled out the application and funded my account with $500 in less than five minutes. Now I can trade live, and my demo account has been extended indefinitely. This is important to me, because I'm a newbie trader and I like to test and validate trading strategies in demo mode before I go live. I also appreciated that my account rep called me within hours of opening my account to let me know everything was set up, and to see if I had any questions.
Nadex Trade of the Week
|The daily chart for gold on 6/27/2014. Chart courtesy of Investing.com|
Contract: Gold (Aug) >1314.0 (1:30PM)
Expiration: Fri Jun 27 13:30:00 EDT 2014
Note: Exchange trading and expiration fees have been excluded
In this trade, I was predicting that the price of gold would be greater than 1314.0 by 1:30PM EDT, when the markets close. I bought 5 contracts at $73.50. So, I put $367.50 at risk to make $132.50 at contract expiration. Gold prices climbed throughout the morning, and spent most of the day trading in a tight range between 1317-1320, well above my contract. If gold prices started to fall toward 1314, I could have sold my contracts for a smaller profit or to minimize losses. Fortunately, as the chart above shows, my trade was never threatened, and it was a nice way to end the week.
You will find a wealth of free trading webinars on Nadex.com and TradingPub.com. As we go into July, I will sign up for at least 8 free webinars hosted by Nadex and TradingPub so I can continue to learn as I trade on the Nadex platform.
The Purpose of this Blog
The opinions expressed in this blog are solely those of the author, and should not be construed as trading advice. I am not a registered or certified financial planner. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. All individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.