Trading is supposed to be fun. If you enjoy doing it and if you are intrigued and eager to learn more about it and how to be a better trader, then you are far more likely to stick with it, and thus be able to get to the next level with it. The amount of fun that you have with your trading will be what keeps spurring you on. Fun is the thing that makes trading worthwhile, even when you’re losing money or going through a rough patch.
Some people like to look at their trading as a game or a competition. If that is what works for you, then go ahead and do it. Just be warned that you can’t let your emotions get the best of you, even if you find yourself doing really well. When you do, bad decisions ensue. These might not manifest themselves as losses all the time, but over the course of time, you will lose money if you stop trading with your brain and start letting your feelings get in the way.
There’s a line of thinking in the binary options industry that has targeted poker and other online gamblers. On a surface level, there are many similarities between online betting and binary options. For one, the thrill of risking money, waiting to see if you are correct in your prediction or not, and then reaping in a profit. Both gambling and trading do have this in common. But once you dive down a bit deeper, you will find that binary option trading is nothing like gambling. Unlike a game of craps or even automated blackjack, binaries have a high level of predictability.
There’s a high level of variance within binary options trading. Even if you have a 60 percent success rate, that’s not going to come in at a consistent pace. Some months you will have a 30 percent success rate and be way done. Other months you will feel like you can’t make a wrong trade. Variance is common in this, and you will find that the shorter the timeframe that you are focusing on, the more variance there is. Even something like 60 second binary options can be fairly predictable, but you will not always have consistent success, no matter how well prepared you are.
In traditional trading through a Forex broker or a stock broker, this concept is referred to as volatility. Variance is typically a term used in gambling. For us, this is one gambling stereotype that binary options have going for them in a positive way. The term “variance” means that there is a degree of predictability to the outcome. With perfect strategy, if you find a strong online blackjack game, the casino has a 2 percent edge over you. You will find that you are winning at times, but over the course of time, that variance in the win rate evens out, and the 2 percent edge becomes closer and closer to reality. This is why casinos are profitable. However, with the variance in a binary options broker, as long as you are employing strong trading techniques, as the variance of short term fluctuations disappears, you wind up closer and closer to the actual odds of your trades. If you are a skilled trader and are employing workable techniques, then the long term edge lies in your court. Variance can work for you or against you, but in binary options, a great trader should keep their eye on the long term, and that will equal money in your pocket. And when your able to have fun trading and you really enjoy what you’re doing, then you are far more likely to wait out the inevitable bumps in the road. This keeps you in the game long enough to get past the short term wrath of variance.