All posts by Michael Hodges

I am a long time trader with over a decade of experience. I am a big fan of social trading and think it is a great way to trade.

The Geek Goes Crypto Currency

Social Trading Crypto Currencies

After many years of skepticism and nay-saying I have come about face, turned to the “darkside” if you will, and embraced crypto currencies. I don’t know quite what it is specifically but between the growing public interest, tradability and what I have been learning about block chain technology and crypto currencies has piqued my curiosity. That and the possibility that a cheaply purchased Ethereum or Litecoin could rise in value to rival even Bitcoin.

What is a crypto currency? It is a means of transferring value across the Internet through a system of digital “dollars”. The most common of these is Bitcoin but there are many others and new ones being developed all the time. What gives the coins value is the block chain itself. The block chain is a digital ledger that is shared across the Internet with whomever wishes to see it. This is usually the crypto currency miners and exchanges where they are traded but could be you or me or anybody with a desire to do so. The ledger means that each and every digital coin, down to the last decimal place being tracked, can be accounted for down to the time it was mined.

It is this accountability that makes them valuable, they can’t be counterfeited and they can’t be tampered with. Because the ledger exists on the Internet and maintained by a network of miners and exchanges all transactions can be verified by multiple sources. The word block chain comes from the fact that entries in the log, digital currency transactions, are entered in blocks. Each block contains a maximum number of transactions and are delivered according to a schedule that varies from coin to coin.

Producing the blocks and sharing them across the network is called mining, miners who do this are rewarded with new units of the coin they are mining. Typically, each coin has a maximum number of units that can be mined so there is a limit to the number that will ultimately be produced whether it is Bitcoin, Litecoin or Ethereum. To extend the amount of time it will take to mine all the coins, and to help support their value, the amount of time and/or the amount of coins that can be mined in a given time are limited and adjusted periodically as needed.

My interest is in block chains in general but when it comes to my purchases I am focusing on Ethereum. I like the platform as an expansion on what Bitcoin has done and it is still cheap around $300 (for now).

Where Do I Buy Crypto Currencies?

Well, you buy them at an exchange and there are very many of them. The one I have chosen to use for myself is called CEX.IO. I chose it because is widely used, gets a high approval rating, is legal to use in most US states, allows you to buy and sell cryptos and even trade them with forex style spot positions with leverage.

Buy Bitcoin at CEX.IO

Does this mean I am out of the binary options business? Hell no! It just means I am branching out. In terms of binary options, crypto currencies and block chains could be the wave of the future. Traders and brokers can focus on digital currencies because they are active and outside the scope of regulators. This is not to say that unregulated brokers are the wave of the future only that regulated brokers having a hard time with regulators blocking them from using stock, currency or index tickers could turn to the crypto world for tickers and pairs outside the purview of said regulators.

NADEX does not have crypto binary options but maybe they soon will. There are lots of brokers out there now who do. 24Option has given up on binary but they have great CFD and forex trading based on digital currency.

How To Win At NADEX

How to win at nadex is a good question I get asked very often by social traders from around the world. The answer is not easy which is why I started a new YouTube channel in conjunction with BinaryOptionsThatSuck.com and Communitraders called How To Win At NADEX so be sure to subscribe. On it you will find series on NADEX education and trading examples where I go in depth into what you need to know to be successful.

Here’s a look at the first video, The Geek’s Tour Of NADEX. In it I give a quick look at the platform, how it functions and how to get the layout set up the way you like it. In future videos I show how to set up your account for 1 click trading, how to make basic trades, how to make trades that don’t rely on market movement and much, much more. If you want to win at NADEX they will be a big help because I’ve already made the mistakes, so you don’t have to.

Don’t forget to like the videos, make comments and subscribe to the channel. If there is every something you need help with or just want to see let me know, I’ll make a custom video for the benefit of the social trading community.

Demo Trading, Is It Worth Your Time

My Answer To The Question, Is Demo Trading Worth It?

I have to say that yes, demo trading is absolutely worth it. It is the best place to get real world trading experience, build your confidence, learn the mechanics of trading and a tool I still use today. Yes, the giant of technical analysis and trading that you see before you today is indeed a demo trader. I do it for a number of reasons but top of the list has to be for safety. Demo trading provides a level of safety for my real-money account that you just can’t get anywhere else. Why is this? It is because I know better than to experiment, test or make wild speculations with my real money; that’s what the demo account is for. Having the demo account provides a place for me to make those trades that don’t fit my general strategy, or are part of my learning experience, thereby providing a layer of protection from the market and from myself. When I see a trade working then I can try the same thing with real money.

Practice Makes Perfect

There are a number of reasons why demo trading is important. For a newbie it is important because it is where you learn the mechanics of trading. Trading demo answers a lot of questions, questions like what happens when I enter an order, what does it look like when it’s open, what does it look like when it is closed, how does my money management work, how does my money management affect my trades and many many other questions a newbie or inexperienced trader may have.

Look at the picture below, I chose it because it is a great example of how demo trading can help you get in synch with the market. How many hours of practice do you think these guys put in to be able to row that boat, how many more to be competitive? That’s what it takes to be successful at trading and that is what a demo account is for.

rowing-scullers

Once the mechanics are learned, the demo account does not lose its importance. It also provides a training ground and launch pad for trading real money accounts. The advancing trader can use the demo account to practice trading strategies, money management, learn and study the market until they know it inside and out. A friend of mine, Okane, recently said something that I have found to be perfectly true. Trading the demo account, and studying the market, can help you develop a kind of sixth sense that will lead you to more profitable trading. Ultimately that is why I like it, it helps you get in tune with the market.

I can readily admit that I am not always in tune with the market. Sometimes I have winning streaks, sometimes I have losing streaks. The demo account helps because when I realize I am on a bad streak, or just out of tune with market direction or churning conditions and volatility, I can switch and start trading there for safety. Then, when I am back in tune I can move my trades back to the real money account. Believe it or not this is a really valuable tool but one that requires a certain amount of self control to use.

Yet another reason I like my demo account is for accountability. It’s very easy to look at a chart and say, “I think the market is going up” or “I think the market is going down”. It is something else entirely to to say that and then act on it. Even writing it down is better than nothing but with a demo account it’s more real, you have points to keep track of and everybody hates to lose their points. You see the trade in the account, you see if it wins or loses and you see if your balance draws down. It may be a fake balance but losing points is losing points, if you want to win as a trader then you have to be able to win with demo money as well as real money.

Where To Find Quality Demo Trading

I use my NADEX demo account on a regular basis. NADEX trading is more complex than spot trading, and more rewarding, so I highly recommend traders start there first. To help, I’ve written two articles on how to make the most of your NADEX experience and fine tune the platform for best results: The Geek’s Tips For Trading NADEX Binary Options and NADEX Trading Tips; Your Account Settings And Execution Speed.

Unfortunately most binary options brokers don’t have quality demo trading. If they do it usually comes with a catch. Not NADEX, they are regulated and squared away, perfect for US traders, and just about anyone else. They have a foreign account for individuals from about 100 countries including the UK and many EU nations.

Investoo.Com Indicators; Good For NADEX Trading

Investoo.com Binary Options Indicator

Investoo.com is a website with a vast library of educational trading videos, indicators and signal systems good for a variety of trading styles. The service is based in England and registered with the FCS, number 82888880. A simple registration will get you access to the introductory level training videos while a one time uprage of $100 will get you the full package. Included are 3 MT4 indicator/signal systems based on PSAR, MACD and Stochastic and over 300 hours of videos organized into several courses targeting technical aspects such as candle sticks and strategy for binary options and forex traders. Click here for my full Investoo.com review.

NADEX Binary Options Signals

The goal of the website is to teach beginners how to trade, but they go far beyond that. Traders of any level can learn something from the videos and the indicator signals are a valuable trading tool. They produce easy to follow entry and exit signals that go hand in hand with the video lessons.

They are MT4 indicator plug-ins based on three standard indicators; Parabolic Stop and Reverse, MACD and what they call the binary options indicator but is really just stochastic (my favorite indicator). The indicators track prices and generate signals as they meet preset criteria, when used along with confirming and coincident indicators they perform pretty well. The caveat, and the website does not sugar coat it, is that false signals do occur, they offer no guarantees of wild success.

This is where the videos come in handy, they teach different methods of picking the good signals and weeding out false signals to help ensure win rates that will produce profits over time. I suggest using them to get least a basic understanding of trend along with the use of support and resistance levels.

In order to use the indicators for NADEX you will also need to use MT4. If you don’t have it it is an easy download as well but does not link to the platform. You’ll use the MT4 chart for basic analysis and signals that you will use to enter trades on NADEX. Once you download the indicators adjust to the time frame you like, the indicator will appear at the bottom and signals will generate in real time.

In order to use them to their fullest potential strategy is a must, simply following them blindly will not produce good results. Strategy includes things like only taking trend following signals. Expiry should be chosen based on the time frame of chart you are using. I suggest at minimum 30 minute candle sticks, I prefer one hour and one day for my trading, but they will work just fine with 2 and 5 minute charts for trading the 5 minute and 20 minute NADEX expiry.

click here to visit INVESTOO.com NOW!

investoo trading for beginners

For more information about trading NADEX, using the platform, using the demo account and adjusting the settings for lightning fast execution speeds you must read my articles The Geeks Tips For Trading NADEX and NADEX Trading Tips; Your Account Settings And Executions Speeds.

NADEX Trading Tips; Your Account Settings And Execution Speed

How To Win On NADEX

My NADEX advice? Open a demo account now and use it to practice my NADEX trading tips. In my first installment of tips for trading NADEX I went over the charts, using the demo, setting up the platform for ease, expiry and strike prices, buying and selling as well as understanding how the order ticket works. In this installment I will go over the Account Settings and Preferences and how they can be used to fine tune the platforms function to increase your execution speed, maintain money management/risk control and, hopefully, increase your profitability.

Click Here For My Full Review Of NADEX Binary Options Exchange

In trading, short term day trading and speculation like what we do at NADEX and with any binary options trading, it all comes down to speed. You have to get in when the time is right and then get out when the time is right, delays in execution can cost profits at best, and create losses at worse. The problem is clear, the need is clear, read on to find out the solutions.

NADEX Account Settings And Preferences

If you have any doubts about NADEX being set up for traders, and for trader satisfaction, they will be dispelled soon. There is a learning curve, don’t get me wrong, NADEX is a fast paced and semi-complex trading environment. Once you get past the entry level obstacles these settings will personalize the platform and specifically the order ticket/order process so that you can achieve ultra fast execution speeds. To put it in perspective, the basic mechanics of entering an order can take as many as 6 steps and a minute or longer for the inexperienced; Open the ticket, choose buy or sell, choose market or limit order (limit adds the step of price you are willing to pay) and then enter. With the right set up you can lower this to as few as 2 steps and under 5 seconds, a huge difference wouldn’t you say?

To find the preferences page go to My Account, click on Settings (under the Fund Account tab) and then click on Preferences. Here you will find 6 settings, these are what they are. . .

  1. The Flashes – The Flashes are those neat little blips of color that show up on the ladder (the ladder is that screen with the list of strike prices and bid/ask prices). Each time a new price is offered or accepted the bid, ask or both will flash. If price goes up it flashes green, if it goes down it flashes red. The setting here is for the flashes to be on or off. I personally like them but NADEX says they may impair performance so that is all the hint I need to turn them off. Every little bit helps, right?
  2. Order Type – Order Type, GTC/LIMIT or Market, could be the most important choice you can make for time saving. A GTC/LIMIT order is good because you can set a price you like and leave the order open until it fills, but it takes time to enter the limit prices into the ticket. A Market order guarantees a near instant fill but you may get a price you don’t like. At face value I prefer the GTC but with another setting, more details below, the Market order becomes my preference.
  3. Default Order Size – This is a gem of a time saver, and an awesome tool for your money management. You can set the default order size to whatever you want. The default default is 1 lot, I like to trade 10 lots because it fits my account size and % Rule (no trade is bigger than 3% of my account). By setting this to your preferred trade size you not only cut down on the time it takes to fill out the order ticket you are also taking the guesswork and emotional quality out of deciding just how many lots you should trade at this time.
  4. Market Order Risk Tolerance – This setting goes hand in hand with the Order Type setting. If you choose to use the Market Order you can set the risk tolerance to help control your fill price. The default setting is $10, this means that your market order will fill if the price is within $10 of the price at the time you entered the order. You can set it as low as $1 or as high as $25. I like to keep mine at $5, this allows a little leeway for price movement while I enter the trade but keeps it to a minimum. I sometimes miss fills but not as many as I would using the GTC feature. In terms of execution speed this doesn’t really increase it but it does make using market orders safer which paves the way to 2 click trading.
  5. Multiple Or Reuse Ticket – This setting affects how the order tickets are displayed. The Multiple Ticket setting lets more than order ticket to pop up at one time. This way traders who use advance strategies utilizing multiple positions, hedging, butterflies and condors to see each leg of their trade at one time. The Reuse Ticket setting is great for traders who may buy and sell or sell and buy the same position more than once during the life of the option. Once an order is sent the ticket stays up and can be used again to enter another trade on the same strike.
  6. Inactivity Setting – This setting doesn’t help execution speed but it does help with Internet security. Set it to as little as 1 hour or as much as 12 hours and the platform will log you off automatically.