TradingVolatility_eBook_InteractivePDF_090117

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EXAMPLE: RISK TO REWARD RATIOS VOLATILITY LIMITED RISK DIVERSIFICATION UP AND DOWN Trading on Nadex involves financial risk and may not be appropriate for all investors. 14 / 41
IT’S OBVIOUSLY IN AN UPTREND. The question is, how much further will this uptrend continue? And will we see a return of the morning’s THIS WALL ST 30 CHART SHOWS A DRAMATIC DROP IN THE MORNING, FOLLOWED BY A STEADY RECOVERY. Even if it continued up as you expected, it could VOLATILE MARKETS MEAN BIGGER SWINGS AND THEREFORE, MORE RISK NEEDED TO GET THE REWARD. Sometimes a sure thing can turn into a bad situation. Suppose, for example, that you bought a stock whose price was in a strong, clear uptrend. With conventional ETFs or futures, you have some choices, but none seems particularly inviting. If you went long with Dow index futures at this point, it might continue up and give you a modest profit. A classic trade with the trend. However…What if it suddenly drops? How far down do you set your stop? If it’s going to be another drop like the morning, you want to get out with a small loss. On the other hand, if it just takes a quick dip before resuming the uptrend, you want to stay in the trend without getting stopped out. Again, how far down do you set your stop? What if you think this may be the top and you want to get short? Setting your buy stop above the previous drop would expose you to a lot of risk. VOLATILITY LIMITED RISK DIVERSIFICATION UP AND DOWN Trading on Nadex involves financial risk and may not be appropriate for all investors. 15 / 41
Page 1 and 2: TRADING VOLATILITY WITH BINARY OPTI
Page 3 and 4: VOLATILITY Volatility Is Opportunit
Page 5 and 6: IF A MARKET USUALLY MOVES ABOUT 1%
Page 7 and 8: VOLATILITY IS A GOOD THING VOLATILI
Page 9 and 10: THE MARKET’S EMOTIONALITY CAN BE
Page 11 and 12: LIMITED RISK The Nadex Trader's Edg
Page 13: IT’S AN OLD TRUISM THAT TRADING I
Page 17 and 18: LIMITED RISK, TARGETED REWARD VOLAT
Page 19 and 20: In a volatile market, a defined tar
Page 21 and 22: DIVERSIFICATION: UP, DOWN, AND SIDE
Page 23 and 24: MULTIPLE ASSET CLASSES: GO WHERE TH
Page 25 and 26: UP AND DOWN Find Opportunity Up & D
Page 27 and 28: “Going where the opportunity is
Page 29 and 30: Let’s put everything we’ve disc
Page 31 and 32: BOUGHT STRIKE AT 10:30 AM THE DOE R
Page 33 and 34: On the upside, the binary you sold
Page 35 and 36: AT HOME IN THE RANGE: LOW VOLATILIT
Page 37 and 38: A FUTURES OPTION IS BASED ON THE QU
Page 39 and 40: FROM PROBLEM TO ADVANTAGE: MAKING V
Page 41: OPEN A NADEX ACCOUNT TODAY Start tr

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