Nadex Protects You From the Unknown

In Blog by Michael Arnold

Red arrow markets-on-a-downturnTurney Duff wrote an article on this week titled  “Does insider trading still exist? Yes 1000%” He would know, as Mr. Duff is former employee of the Galleon Group and a best-selling author who chronicled the rise and fall of his career on Wall Street in the book, “The Buy Side”. If you are not familiar with The Galleon Group, a quick Google search will tell you that prior to closing in 2009, it was one of the world’s largest hedge funds, managing in excess of $7 billion. The firm, or more specifically, it’s founder and CEO Raj Rajaratnam was the center of a huge insider trading scandal that caused it to close it’s doors.

Why reference this? Not to defame Wall Street, but to point out that in the business of trading there are things going on behind the scenes, legal or illegal, that you are not aware of and cannot contain nor control. You can only trade what you know. Otherwise you end up potentially losing money on conclusions made from false information, or worse yet, make money on these same conclusions. Why is the latter worse? Because nothing encourages bad trading more than making money of the initial sets of bad trades. Once you get in the habit of taking bad trades, like many bad habits, they become hard to break. Nadex binary options protects you from many of these unknowns and encourages good trading habits by limiting risk and limiting reward. The benefits of limited risk are obvious, but the benefits of limited reward are not. You can read more here about limited rewards and target trading.

Binary trading in general and trading on Nadex specifically (the only CFTC regulated binary exchange) is a great way to build good habits by taking care of 2 of the bad habits for you; greed and accepting losses. The only 2 things you can truly know in trading are the price action, and the money YOU place at risk. Learn to read price action and be prudent about risk and you got 4 things taken care of. Don’t guess your trade triggers, know them.

Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results