When considering a career in Binary Options trading one must understand that although it is simple it is not easy. If you were to believe the broker claims all you need to do is set up an account and you will make hundreds of dollars a day. In reality nothing in life comes that easy. You must make good decisions in order to have an upward trend in your trading account. This takes knowledge and skill, which must be developed over time and through practice.
Making a living from Binary Options is possible. Although 80 to 90% of traders of Binary Options do not make profits they will tend to be the ones that use the investment medium as a gambling platform. When a trader is not doing significant fundamental and/or technical analysis, and does not have predictive power when entering the trade, they will naturally lose more than they gain. Most traders that make consistent profits from Binary Options over a prolonged period of time become experts in a particular niche. They gain a competitive edge through knowing exactly what is going on in their niche and having a clear understanding of how chart patterns relate to future price behavior. Many spend hours and hours a day watching charts, doing analysis and reading news. Perhaps the two keys to success in Binary Options, outside of knowledge and competency, are money-management and risk management.
Making a living from Binary Options requires a financial trading account. This trading account must be run professionally and must contain money that is disposable. If you borrow from mortgage payments fund your trading account you’ll make emotional decisions, and Binary Option trading requires logical and rational thinking. Along these lines, professional traders manage their risk by only exposing 2 to 5% of their financial account in any one trade. Unforeseen circumstances could otherwise cripple their ability to continue trading.
Naturally, making a living from binary options requires that you choose the asset classes in which you will trade. The best way to do this is by understanding where you are likely to have your edge. It may be that you choose a certain set of stocks, or certain currency pairings, or a combination of different assets classes. Your daily routines will be driven by when these asset classes are traded. Some market indices are traded 24/7, some asset classes are only traded for a few hours a day. Your routines must fit in with when there is volume and volatility in the market in which you are trading, as these are important trading criteria.
Making career in Binary Options is very possible, but you must learn and be disciplined in your approach. Don’t expect to be highly successful straight away. Like with any other pursuits in life experience and knowledge will bring improved results. If you are just entering the trading environment for the first time then begin with a demo account, or with a small financial trading account.
About the author: Eleonora Marchetti is an expert on financial markets specializing in foreign exchange and trading in binary options. An honorary graduate of the SDA Bocconi School of Management in Italy, she provides consultation services to various economic powerhouses, including the globally renowned binary options trading firm, Banc De Binary.