Okay, I’m Profitable. Is Forex Next?
Do you like to challenge yourself? Once you’ve mastered something, do you think it’s time to move to the next stage or are you content to keep doing what you’re doing? And on that same note, if you became profitable with Binary Options, do you think you need to switch to trading big brother Forex? The answer is relative – as almost anything – and it depends a lot on the reason why you entered the trading world in the first place. Keep reading to see in what category you fit in.
Trading for Recognition and Fame
Believe it or not, to some guys money is not everything. They are trading with the goal of proving to themselves and to everyone else how good they are and money comes second; to them, money is just like the olive in their Martini: sure, it tastes good and they’ll eat it but the beverage is the main attraction. These guys are always looking for new challenges and ways to show off their talent so if they’ve mastered Binary Options, they are likely to start looking for another proving ground and what better instrument than Forex. To them, Forex is where the big boys are and they think “if I can make it there, I’ll make it anywhere” as Sinatra said. And they’re right, you know, Forex is a lot more complicated than Binary Options and it involves a lot more skill when it comes to position sizing, money and risk management. Also, the psychological side is tougher: “Should I close the trade now with a small profit or should I let it run to get more dough… ah, but if I leave it open, maybe price reverses… ”. On the other hand, Binaries are straightforward: the option expires and price is either above or below my entry so I win or lose. No more decision making. And one more thing: the knowledge needed to be successful in Forex is greater than the one needed for Binary Options. For example, you might make it in Binaries without knowing how to draw proper Support and Resistance or even a trend line, but I doubt your account will last a week in Forex if you don’t know these things.
To a person who is always looking for a challenge, what I’ve just said will be like honey to a bee and they won’t be able to resist the temptation that comes with a more complicated trading instrument. After all, the harder it is, the greater the accomplishment of mastering it and the fame that comes with it so the guys who are not in the trading business mainly for money will hop on the Forex train without hesitation. But there’s another category of traders…
Trading for Money… Nothing More
For these guys it’s simple: their main goal is making money and the instrument used to achieve their goal comes second. Both Binary Options and Forex can bring you money if you can trade them right, so what would be the purpose of changing from one to the other once you are profitable? Forex is a leveraged product and the potential rewards are bigger, but so are the risks. Binaries are easier to master but there are a lot of shady brokers that cast a shadow over this industry… the list of advantages and disadvantages could continue for a long while but I am not trying to compare the two because it ultimately comes down to what you are comfortable with. I hardly believe that a guy who is interested in making a good living from trading will say: “Hmmm, by trading Binary Options I can afford almost anything within reasonable limits, I don’t have a boss, I don’t have annoying colleagues, I make my own hours… but I’m gonna risk losing this lifestyle and switch to Forex”. Since his goal is making a good living and that goal is already achieved, he will probably continue to do what he is doing: trade Binary Options.
My Conclusion: A bird in Hand is Worth Two in the Bush
People are different (Thank God!) and they will always want different things but the real question is “What do You want?” Are you looking for recognition and fame? If that is the case, you will probably feel the need to conquer another peak, to win another battle and you will eventually switch to another trading style – Forex maybe. On the other hand, if you are satisfied with making a good living, away from the spotlight and you are already profitable from Binary Options on a constant basis, then you probably know that a bird in hand is worth two in the bush and you’ll stick to what you’re doing now.