Try Out Day Trading With A Nadex News Trade

You may want to try out day trading, but you don’t have a whole lot of money with which to start. You may not be comfortable with high risk, per se yet, then starting out in Nadex spreads is an excellent solution. Trying out scheduled news trades while using planned strategies can make it even easier for you. Trading Nadex still means you are day trading only you have defined capped risk when you trade spreads.

Tuesday morning, October 27, at 10:00 a.m. ET The Conference Board Inc. will be releasing the Consumer Confidence numbers for the month. The Federal Reserve Bank of Richmond will also be releasing the Richmond Manufacturing Index. Both of these reports can move the market but then the market can pull back or the market can remain in a range.

With this kind of market movement and based on previous market analysis of market movement on the last 12-24 reports, it is recommended to trade Nadex spreads using an Iron Condor strategy. The market to watch for this trade is the EUR/USD. You can watch a five-minute chart. To set up your trade, you want to sell a Nadex EUR/USD spread above where the market is trading at the time and buy a Nadex EUR/USD spread below where the market is trading at the time. The floor of your sold spread should match the ceiling of your bought spread and should be where the market is trading at the time, or very close to it.

You can enter your trade for this scheduled news event as early as 9:00 a.m. ET for 11:00 a.m. ET expirations. The profit potential you want for this trade is $25 or more. To easily find the spreads you want just use the spread scanner. Below is an example of the spread scanner with Nadex EUR/USD spreads showing. You can see the spread contracts are listed down the middle with the floor price on the right and ceiling price on the left. To the far right is the risk/reward for spreads to buy and to the left is the risk/reward for spreads to sell. First, look for the spread with the right ceiling and floor and then be sure their combined reward is $25 or more.

To view a larger image click HERE

The combined total risk on this trade is the amount you put up to enter the trade. However, you will be placing stops as well to limit that risk and keep your trade to a 1:1 risk reward ratio. Depending on your exact entries, the market can move up or down 50 pips.This will determine where the 1:1 risk reward ratio will be and where to place your stops. As the market moves and reacts, one side of the spread may profit and then when the market pulls back, the other side may profit. This is called legging out of the trade, when you exit one side and then the other. You can always trade more spreads, just be sure to have the same number on each side of your Iron Condor. If the market remains in a range or pulls back and the spreads expire when the market is where the ceiling and floor meet, then you make max profit as well.

To access the spread scanner and see more news events and the strategies to trade them, go to www.apexinvesting.com.