While trading binary options can seem like an exciting way to earn a living, the reality can be quite different. How do I know this? Because I traded in the binary options world for 9 months in 2012, and still dabble a little bit today.
The most exciting aspect of binary options is the potential reward. Just one successful trade can mean a huge pay-off, which means for many people it can become like an addiction, as they keep plugging away looking for the next big score.
However, with huge rewards comes a lot of risk. I found this out the hard way, by losing a few thousand dollars when I first started out.
Ultimately though, while my financial loss stung hard at first, it gave me the opportunity to learn from my mistakes, and within a few months I was back on my feet and following a profitable strategy.
Not everyone enjoys the school of hard knocks though. Which is why the majority of people who try their hand at binary options end up quitting in frustration at the first sign of trouble.
This is why you need to give serious thought to whether or not trading binary options is for you. If you are prepared to learn some harsh lessons, take it on the chin, and move forward, then you might just have a chance.
Here are some of the attributes you will need to trade binary options successfully…
Keeping in tune with the markets
The binary options world changes at a rapid rate, which is why you need to be focused and able to keep in tune with the markets. In a way, it borders on obsession, as you can easily end up spending most of your day watching the movement of stock prices so you can find the right opportunity to pounce.
Don’t be fooled into thinking that successful traders spend most of their time at the beach and only check their computer every couple of days. They don’t. If you want to succeed then you have to be prepared to put in the hours on a daily consistent basis.
Making fast decisions
A few times during my stint as a binary options trader, I would spot an opportunity… and then hesitate. By the time I had come to a decision to act, the opportunity was gone. You must understand that things happen fast in the trading world, which is why making fast decisions is a very valuable attribute.
The simple fact of the matter is this: If you consider yourself to be a "Steady Eddie" or "Cautious Carol," then the world of binary options trading is not for you. Sorry to be so blunt, but it’s the truth.
In my experience, the number one attribute you need to be a success as a binary options trader, is the ability to avoid emotions so you can keep a clear head.
When you are risking hundreds or thousands of dollars on a daily basis, then becoming emotional will do more harm than good. Sure, you might make a few bad trades, and it can feel like the world is against you, but if you become emotional then it only serves to make the situation worse.
Jessica Simpson learned about binary options at Financial Trading School and during 2012 she spent 9 months as a full time trader working from home.