Know Your Binary Options Plays Like A Quarterback Trader

A quarterback on the football team has many plays he can call. He has to know how to read the defense, where they stand on the field and where they stand in relation to the clock.

Like a quarterback, you, as a trader, also have many plays you can call. The play is not simply buying or selling. Its what vehicle will you choose to trade the buy or sell signal you have on your charts. Nadex Spreads and Nadex Binary Options give you access to more plays than a simple buy or sell contract on forex or futures or stocks. Sometimes the hardest part is knowing which play to call.

As a trader, you have clues given to you that let you know when and what play to take. These clues become more apparent to you, as you realize they are on your charts and you use them to your advantage.

One of the aspects of your play is being aware of statistical moves. Hopefully, you are starting to understand implied volatility based deviation levels, knowing when a market has moved an implied deviation, and you are not just using a standard deviation level.

You are comfortable enough to know that the deviation levels usually work, and you are confident in knowing that it works because it’s not based on historical movement. The diagnostic implied deviation levels are a leading level indicator because they use implied volatility instead of past movement.

Let’s consider some of the plays that go into doing a Momentum Scalp Trade. When you analyze your charts before you make the trade, you need to look at volume. If the volume isn’t there, don’t force the trade.

One of the biggest mistakes a trader can make when doing a Momentum Scalp is not waiting for confirmation. If you want this play to work out in your favor, you’ve got to wait for the thing to break the high by three ticks. Otherwise, it’s just going to oscillate around on you. Don’t overtrade! Don’t jump in too fast. It will just mess you up.

Just as the coach of the football team takes the team into the locker room during halftime and reviews their game, you have to review the plays you have used. At least once a day, and preferably after each trade, ask yourself, “Have I followed my own rules on this trade?” If you didn’t, you need to ask yourself, “What would have happened if I had followed the rules?” Continue with these questions:
What did I do wrong?
What did I do right?
What should I repeat?
What should I not repeat?
These are questions the coach and the players might ask to save them from having a losing game. If you can review after each trade, you can save yourself from having a bad (losing) trading day.

Volume is a great tool that you can call into play. Watch how it increases and then backs off. When it backs off, this is your warning shot. In the image below, it is well documented on the things you should be focusing on to get in the best trade or stay out of a bad trade.

If it’s gaining momentum, the bars are forming faster and faster and their slant is actually going down. The volume slant will be going up. If the volume is going down and it’s taking longer for the bars to form on the bar timer, it means that they have had more time to fill orders, but they’re filling less and less of them.

This is a signal to get out your butterfly net! It’s a decelerating market, not a momentum market. When it’s a decelerating market, you can use your butterfly net and put on a butterfly trade.

As you memorize the plays you want to call into your winning game, look at the volume. Look at the bar timer. See if these tools can help you pick out a better trade. Learning to do this can tell you when to do a trade or not do a trade.

If the momentum isn’t there, it can send the signal that it might be time to do an iron butterfly, an apex profit popper, classic Boomerangs, ITM spike strikers or an EPC. If the momentum is there, that tells you it’s time to do a momentum scalp, an OTM spike striker, an APEX trade, or an MVP reversal.

Like the quarterback, you can call these plays with the goal of having a winning season!

To learn more about how to trade any of the systems listed in this article, go to www.apexinvesting.com. Apex Investing Institute offers free education, effective tools and a room community of seasoned, as well as up-and-coming traders. Together in a supportive environment, along with trading tools for ease and convenience, traders of all levels can learn how to trade Nadex binaries and spreads as well as futures, forex, stock and options, and gain an edge for successful trading overall.