5 Tips for Smart Gambling with Binary Options
Trading binary options for fun? Even if profit is not your goal, and you’re willing to lose money for the sake of entertainment, you can still choose to gamble smart. When you make smart decisions trading binary options, you extend your bankroll, and with it your fun. The longer you can stay in the game, the higher the odds are that you will win the game. And even if you don’t, you’ll be able to play for longer before you run out of funds. So is binary options trading considered gambling? Find out.
There’s one more advantage to gambling smart too, and that’s avoiding problem gambling behavior. There’s a reason gambling is often considered to be a social vice, and that’s that there is a huge crossover between the population of gamblers and addicts. Gambling addiction is a serious matter which can have grave financial consequences, both for yourself and for others who depend on you. Making smart decisions keeps your head in the game and keeps you grounded, which helps you to avoid falling into a pattern of addictive behavior.
Here are 5 tips for gambling intelligently and advantageously.
- Have a money management plan
This is a tip that I typically give to traders who are serious about trading for a living, but it’s one that applies equally well to any gambler. Money management rules determine how much money you are willing to risk on a single trade. You don’t have to be as strict about this as a professional trader, who might only risk 3% per trade. You might risk 5%, or 10%. But it’s important to calculate how many losses you can withstand before you burn through your entire account. The less you risk, the more trades you can enjoy before you blow your account. And the longer you stay in the game, the more likely you are to win.
I also tell professionally oriented traders to trade a consistent amount on each of their trades. But this is because professionally oriented traders only take the very best setups, those they expect to win based on careful research. As a gambler, you don’t need to follow this kind of consistency if you don’t want to. After all, you’re here to have fun. You still should consider doing this however if you are a methodical gambler and you are trying to hone your edge. It can help you to succeed—and like some poker players in Las Vegas, you too might discover that you can “gamble” for a living. Sometimes gamblers who are methodical enough in their techniques turn into pros.
- Trade with a method if you want an edge
If you don’t care about having an edge, and you just want to have fun and not worry about the details, this point is not particularly important. If however developing an edge is part of what you find compelling about trading, then you are going to need a trading method, just like a professional trader would use. You wouldn’t necessarily approach this with the same seriousness and dedication as a pro, but you would definitely want to at least have some consistent basis for placing your trades. When you see the effect this has on your bottom line, you may very well decide to keep learning and fine-tuning. Once again, when you trade intelligently, you stand a chance of crossing over the line from gambler to professional.
- Understand how bonuses work
Bonuses come with a lot of fine print that traders fail to understand, often because they fail to actually read the fine print in question. Typically you have to roll-over your deposit and bonus 20 to 40 times in trade volume to claim the bonus as cash, though you can use the bonus to trade. This impacts your money management plan, so you absolutely must think carefully before you accept a bonus, and then you need to calculate exactly how that affects the percentages you plan to invest on your trades.
Another common string attached which you’ll want to look out for is brokers who refuse to allow you to withdraw your initial deposit at all until you meet the volume turnover requirements associated with the bonus. Yes, that means that you are forfeiting your initial deposit if you aren’t going to achieve that turnover. That’s a hefty cost, just for clicking “Yes, I agree.” No, not all brokers are like this, but you have to check the terms and conditions carefully. You don’t want to fall into a trap like this, even if you’re trading for fun.
- Choose a broker carefully
This follows directly off of the advice above. Just as you want to be selective when accepting a bonus (or not), you are going to want to be selective in choosing your broker. Check out the bonus terms in advance, if a bonus is important to you. Also check whether accepting the bonus is optional. Some brokers actually require it.
What else should you check for when you sign up?
- Fast and flexible deposits and withdrawals. Particularly pay attention to terms that apply to withdrawals, and make sure that your money will be accessible to you when you want to withdraw it.
- Good customer service. A broker that answers your emails promptly and staffs their live chat line with a helpful, transparent employee is best. When you get on the phone, avoid brokers that hard-sell you on a sign-up, and choose a broker that provides you with prompt, informative answers to your questions.
- Tools for controlling trades. Look for a broker that lets you close out early if you want to, double up, or roll over. A broker that offers Option Builder and lets you choose your own expiry times is also providing you with valuable tools.
- Reputation. Look up binary options broker reviews to make sure that you are choosing a broker that hasn’t been red-flagged. When you read reviews, use your own discernment to decide whether you are reading objective critiques or not. Some reviews are written by competitors, and others are posted by advertisers. But many are posted by customers and by third party objective researchers who are trying to help customers make informed choices.
- Stay accountable
Probably the most important thing you can do as a gambler is stay accountable to yourself, and if applicable, your family. Gambling for fun is no different than spending money on any other form of entertainment. When you spend money to go see a film or a performance, or to watch cable television, or to play a game online, you are still exchanging money for entertainment. With gambling, it is no different—except that you have the chance to get some of it back.
But you need to always remember that it is no more than a chance, and that luck is fickle. Set an entertainment budget for yourself each month, and don’t spend money outside that budget on binary options. Keep the essentials and necessities of life as your priorities. If you cannot afford to spend money on binary options one month and pay your bills, don’t trade that month. Keep a log of your expenditures, and keep that log open and available to members of your household. And if someone who depends on you for money asks you to stop trading because he or she thinks you are developing an addiction, give that person the power to close your account.
Gambling binary options is a lot of fun, and it can be lucrative when luck is on your side. You will have a much better shot at cashing out if you follow these simple tips. Trade with a money management plan, and if you want to develop an edge, use a trading method. Research brokers thoroughly and read the fine print on their terms and conditions, and stay accountable to yourself and your family members about your trading activities.