Whether you are getting into binary options trading in order to make a living or because you want to have fun and maybe make a little cash on the side, there is no denying that binary options does not exactly have the best rep as an industry. Unless you are a very serious trader, binary options trading essentially boils down to a form of gambling. Is gambling really so bad, though? Or is that just a prejudice that a lot of people have?
I would assert that there are some valuable life lessons and skills to be learned from binary options trading, whether you are a serious trader or “just” a gambler. Here are a few of them!
Whether you are trading seriously or not, managing your bankroll is something you have to get down. Even if you are playing for fun and not for profit, you want to maximize your bankroll so you can have as much fun as possible. That also maximizes your chances of winning. That is a great skill which you can translate to the rest of your life. Those same money management skills are great for budgeting and everyday accounting.
You don’t get something for nothing.
Binary options bonuses can be exciting to new traders, but veteran traders know that they come with strings attached. This is a good reminder that there really is no such thing as free lunch. (see some examples)
Play the hand you are dealt or wait for another.
You cannot control everything in life, and binary options trading echoes that. When you look for a trade setup, you cannot will a setup into existence just by wanting it badly enough. Either there is a setup, or there is not a setup. Trading teaches us to recognize opportunities and to accept when what we see in front of us is not necessarily what we want. Traders learn to see the world as it is.
Patience is rewarded.
On that same note, trading is a great exercise in patience. If you want to give yourself the best chance of winning, you have to wait for the right setup. That can mean waiting longer than you feel comfortable. But that is a skill which is always rewarded. In trading, you do not take a “B” trade and expect to win. Likewise, in life you are rewarded for waiting for an “A” relationship or job or some other opportunity. When you are willing to settle for second best, you usually lose. You only get one life, after all, and you should make the absolute best out of it, because that is what you deserve.
The less you rely on luck, the less you are at luck’s mercy.
If you do decide to create a trading system, you will discover that you win a lot more often. Trading may never be entirely under your control, but the more aspects of it you choose to control, the less you will be relying on luck. Luck will always have some impact on your fate, but you never have to be 100% at its mercy so long as you look for ways you can develop an edge. That applies in life as well. You may not really be able to make your own luck, but you can certainly make your own skill, and use that to reduce your exposure to chance.
Know when to cut your losses and get out of a bad investment.
All of us have invested in things we realized later were mistakes. Maybe you worked years at a job you hated, but thought if you just could hang in there, you would get that promotion you were waiting for. Perhaps you had been in a long, turbulent relationship, but thought if you just tried harder, you would finally see eye-to-eye. Maybe you invested a lot of time and energy into a project that was not succeeding, but were told over and over again, “never give up,” so you chose not to. After all, who wants to be called a quitter?
And what happened? Maybe you just kept losing. Maybe you are still losing.
Sometimes it is okay to quit. In fact, sometimes it is best. In binary options trading, we learn how to cut our losses. You cannot just keep rolling a trade over again and again when there is no longer a justification for a trade. You will not just “get it all back.” Sometimes you just need to accept a loss and move on so you can start winning again. That goes for life too. Sometimes you really do need to quit that job, relationship, or project, and get on with your life. You can use the exact same criteria you would when evaluating a trade: Does the reason for this investment no longer exist? Would I still get into this investment now? If the answer to either or both of those questions is “no,” then it is time to get out.
Underdogs can win.
One of the most exciting things about binary options trading is that you can get into it even if you do not have a huge bankroll going in. You can start with $200 and have a rags-to-riches story of success. Maybe you win it all with one big trade, or perhaps you slowly build your way up with small, disciplined trades. Either way, it can happen! If it has not happened to you, you may know someone who to whom it has. And yes, sometimes winning involves taking a scary risk. Gambling teaches us how to move forward confidently even in environments which are rife with uncertainty.
There you go. Gambling is not all bad! In fact, the lessons you learn from trying your luck and your skill at binary options trading can teach you important life lessons. When you take those lessons with you when you close out of your trading platform and apply them to your relationships, work, hobbies and passions, you will win more and more—in every aspect of your life.