Binary options trading is similar to many things. We can compare it to running a marathon, eliteshooting, race drivers (we will talk more about this in our future articles), and more generally to sports. This last one will be explained in this article, focusing on 5 similarities between binary options trading and sporting activities.
– Be swift
It’s a mandatory quality when trading with binary options, especially when the market is volatile and if you trade in the short term (60s to 5mins). Your reaction speed to respond to evolutions in the markets’ is vital and determines your earnings rate. This swiftness is also present in sport. An athlete has to be able to think quickly and have perfect timing between making a decision and completing the action.
– Be tough
If you speculate on binary options covering Europe, America or Asia, you are speculating at least one or two hours a day. Even if you practice trading for 30-60 minutes per day, you have to be able to endure the speculative operation during this trading session and be able to stay focused. Similarly, if you play basketball, football or tennis, you have to be able to have enough stamina to survive the playing time to finish the match.
– Don’t stress
Stress is bad for binary options traders because it impacts psychological well being and can lead to emotional trading. If you let your emotions influence your Speculations you ignore your logical market analysis and therefore, your chances of success are jeopardised. It’s essential to manage your stress and control it to avoid making too many mistakes which will eventually lead to financial losses. It’s the same in sport, practice a physical activity when stressed can result in wrong decisions during a game and possibly losing the game.
– Persevere through difficulties
Making a bad trade or a bad trading session shouldn’t demotivate you or make you quit trading. If it has such a big effect on you, it means that you haven’t devised a trading strategy or money management plan. Practicing binary options trading seriously with a strong approach to risk management will allow you to face 1, 5 and maybe even 10 consecutive losses and not give up because of some difficulties, like a boxer persevering after a beating or a goal keeper still standing after many goals get through.
– Be prepared
In sport, you have to be patient and work hard to face your opponents and do the best you can to get good results. In binary options trading you also have to work hard, complete training in binary options and research for hours to find a binary options strategy suited to your profile.
To be efficient in binary options trading and be profitable with your online investment activity, there are no miracles, you have to work and make an effort. Like starting any type of business, it’s important to have a strategy, an action plan defining when to move forward and what risks you can take. A binary options trader is like a businessman as well as a high level athlete. Without putting the work in, a trader can’t expect to earn a lot of money with binary options.
Starting trading with binary options is quite easy, to make money thanks to financial markets via this speculative product you just have to open an account on a regulated binary options broker. Why a regulated one ? Because they are serious brokers in the trading industry and because they are almost all registered with the european financial regulators. TopOption is an excellent regulated broker for example.
If you open an account on 24Option (or any other broker on our website), keep in mind that you will benefit with a bonus on you first deposit that you usually don’t have. With 24option.com, that bonus is 100%, even if that particular broker doesn’t normally offer any bonus for its usual customers. Moreover, you will also benefit with the BonusBinaryOptions.net guarantee.