5 Step Trading Process

TradingPub Admin | July 2, 2014

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At the TradingPub, our primary objective is to expose traders to ideas, concepts, and platforms that bring a heightened awareness of new techniques that may help improve their consistency and confidence when trading the markets.

In today's special webinar on the "5-Step Trading Process", Geoffery Smith detailed the process he goes through when deciding when and where to enter into a trade.  Geof is the Chief Instructor at the Diversified Trading Institute (DTI) and has 20+ years of experience trading stocks, options, and futures.  And, regardless of the market he is trading, he follows these five steps as part of his daily trading routine:

  1. Determine best market to trade
  2. Identify how the market is trending
  3. Decide if a short or long entry is best
  4. Calculate risk versus reward
  5. Decide how to best execute the trade

Of primary importance to Geof in his trading, is looking for ways to eliminate risk and maximize profits. Put another way, he constantly asks himself. "how much am I willing to risk to prove I am right" before entering into trade. And in this regard, he shared how trading Nadex binary options has become a nice way for him to participate in a market move with lower risk.

For example, during his presentation, Geof used a set-up in Soybean futures to illustrate how and why he decided to place a binary options trade in his Nadex account, as opposed to a trade in his futures account. Essentially, his risk to reward ratio was more favorable trading binary options on this set up, than the money he would be risking on the futures trade.

See the full video of Geof's presentation on the "5-Step Trading Process", and how he uses Nadex binary options to reduce his trading risk and hedge his positions:

And if you are not familiar with Nadex, or how to trade binary options, please check out the free video library we have put together at TradingPub for great reference material on this topic:


Thanks once again for registering to attend this valuable trading education webinar and we look forward to seeing you at future events.