The human mind is a powerful thing, and when you combine emotions and money, you can expect one of two things. You can either end up being extremely profitable in your financial trading, or you can end up making very expensive mistakes.
Most professional traders focus on risk management more than anything else. This is because risk is perhaps the weakest link in any trading style. Therefore, it makes a lot of sense to focus on improving this weak point in trading.
Money management is an important aspect of trading that should not be taken lightly and is an essential part of your success as a binary options trader. Managing your capital to lower your risk is a key concept of trading that will determine your risk profile.
First things first, the binary options industry is not an “ideal world”. Sorry to burst your bubble, but this industry is not free of scammers and people who are just hunting your money under the guise of being your friends.
Knowing how the binary options brokers make profit can help traders understand the complete process, as well as help them pick the right broker.
Are binary options gambling? We consider that both entirely false and entirely true. In fact, binary trading is similar to spread betting because you don’t actually own the underlying asset; you simply speculate whether the price will rise or fall.