Some Questions that Binary Options Traders Forget to Ask Themselves
So, Why Did you Start Trading Binary Options?
Why did I start trading? No matter how many times I ask myself that question, the answer is the same: to be free to do the things I like. I didn’t want to have a boss or to be a boss anymore. There was nothing wrong with working (trading is a lot of work too), just that I didn’t like getting up in the morning and doing the same thing every day in anticipation of a paycheck which only allowed me to cover my basic needs. Ok, that’s a brief explanation of my reason, but it doesn’t mean other reasons are wrong. People may choose to trade Binary Options for the thrill, for fun, as a hobby, as a side business and all of them are valid reasons. The thing is that once you know why you are doing something, you can start doing it right, so why do you want to trade Binary options?
Question #1 – Do I Want to Trade for Fun and Thrill?
I must admit that watching a trade complete its course can be fun. Well, not actually watching those candles go up and down – that’s pretty boring – but thinking about the money you are going to make is fun. While the expiration approaches and your trade is well in green territory you start thinking about your next win and then “What if?” comes to mind: What if I could make this amount of money every day? What if I can do it for an entire month or even year? Yep, that’s fun but then again if you’re doing it for fun, why don’t you go to a casino? It’s a more social experience; you meet people, waitresses with deep cleavages serve you drinks, everybody pays attention to you if you win… come on, wouldn’t you “trade” that over a lonely computer screen? And anyway, roulette is not that different compared to Binary Options if all you do is gamble. Sixty seconds Put or Call, Red or Black… all the same, all fun, no pressure.
Question #2 – Do I Want to Trade as a Side Business?
Some guys start trading to add a little extra to their income. You know, the salary pays the bills and profits from Binary Options pay for the car you always wanted but was too expensive or for an extra star at the hotel you’re gonna stay during your next family trip. Usually guys who look at binaries this way are a bit more conservative than the ones who do it just for fun. The difference is that the first guy gets his thrill independently of the outcome of his trading: win or lose, it doesn’t matter because he is not trading for money but for the feeling he gets. The second guy has a goal to achieve; he needs to make money out of trading and he cannot afford to lose part of his salary, which pays the bills. Furthermore, he cannot be suckered in by brokers who ask him to deposit more for a bigger bonus or by scammers who promise the Holy Grail for $99,97.
Question #3 – Do I Want to Trade for a Living?
If you are trading for a living, you will have a much bigger pressure on your shoulders than the Fun Guy or the Extra Income Guy. The first one doesn’t feel any pressure because he doesn’t trade for money, just for the thrill; the second guy needs the extra income to achieve better quality of life for him and his family so he has some pressure but he also knows that bills can be paid from his salary. Now, the Trade-For-A-Living Guy, the one who wants to become a Pro and to make his money exclusively from trading is under a lot of pressure. After all, if trading doesn’t work, how is he going to pay the bills? In fact how is he going to eat if his trading is not successful? Borrow money for food and rent? That’s a gut wrenching feeling… and needless to say, this guy has to be on top of his game. He has to be a well oiled machine that does exactly what it’s supposed to do, exactly when it’s supposed to do it. Countless hours of learning and practicing are required and the decision to trade for a living must be made only when you are in complete control of all the aspects of your trading. Be prepared because the road is long and tough… but the rewards are almost amazing.
Which One is Best? Which One Should I Choose?
No matter what path you choose to follow, make sure you stick to it and don’t mix it with others. In other words, if you want to make a living out of trading, don’t treat binaries like a gambling instrument. If you choose to trade BO for fun, why bother with strategies and learning stuff? Just trade! Because all the complicated terminology and concepts can take the fun of out of it. There’s nothing wrong with trading for fun or gambling on binaries as long as it makes you happy… just don’t assume you are a trader. Bottom line is: the best way is the one that fits you, not the one that others consider best.
So what are you trading for? Fun? Thrill? Living? Extra Cash?? Come and tell us on CommuniTraders Forums!