I need to give credit where credit is due. Yesterday, I had the opportunity to talk with Rob Booker from traderspodcast.com about my progress as an aspiring trader. The topic was NADEX and how I use nadex to control my risk even further. So how is it that I came to learn about Nadex?
Well to be honest, this is the short story…
When we become traders, we all have mentors. I have mine and you have yours. I have many mentors but today I will speak about one of those influential people that have helped me become the trader I am today.
I am a member of the Knoxville traders meetup group in Knoxville, Tennessee. Two of the traders that have helped me along my journey are Michael Tatman and Troy Epperson. Michael taught me about trend following and all the grandness that come from that aspect of trading. I have covered that info before. Todays topic will be about Troy Epperson.
Through a series of monthly meet ups, we soon became friends and started having meeting together outside of the group to talk more about our passions in the trading world. I soon found out that this man was full of knowledge that I only aspired to have. It seemed as if he had the answer to every single question I had.
I remember trying and failing at options trading and it was not until I had a series of meetings with Troy that I actually understood why I had no success. He taught me such things as ‘The Greeks’, time decay, and all that jazz. You see, before, I had no knowledge of these things. Troy explained them so well that I became familiar with how options work, really fast.
For some reason, we only met up at mexican restaurants. No american, no asian, only mexican. I have no clue why. lol
Anyhoodles, I really liked the subject of options but I wanted something that didn’t take months to play out because I wanted to use options to hedge short term plays. I liked the fact that you could hedge investments with options but I didn’t like the way they were traded before expiration. The underlying price could move 200 pips but the option price would only move 50 and it wasn’t until expiration that it would pay off. My style of hedging would not work like this.
Then one day, Troy held a meeting about NADEX. He talked about these short term options contracts that lasted a week, a day, and intra-day. I was amazed with what I heard and had to learn more. I was thinking thoughts such as, “Can I really hedge intra-day, tick for tick?” and “How can I further reduce risk with nadex?”
I invited him to lunch one day and totally grilled with with questions in several emails before hand. When we met up at the restaurant, I grilled him even further about traditional options and how they work in comparison to nadex options. I asked about arbitrage, credit spreads, calendars, and the whole array of ideas. He had the answer to each one of my questions.
So I went home and crawled in my cave for a month only to surface when I found what I was looking for. What was I looking for? To put it bluntly, I wanted a way to trade without stops and with so little risk that I could put on a position 20 or 30 times before one played out profitable and then the entire series would be profitable. This is what I am finding with nadex.
Troy played a huge part in putting it all together for me and for that I am grateful.
I also found a video on youtube that Troy conducted.