Having the right outlook on your trading will make a world of difference when it comes to which binary options broker—or brokers—you end up using. Your broker is the gate between you and your trades, so you want to make sure that you enjoy using the broker that you have on your side. There will be ups and downs in your trading account size, but as long as you have the right point of view, are taking money management into account, and you have a great broker on your side, then overall, your account should be growing. You will have good days, and good weeks, but you’ll also have bad days, and bad weeks. The right broker helps smooth out these dips, but to find this, you will need to make sure that you do your research and select the right broker to help you find the success that you deserve. Even a very skilled trader is at a disadvantage if they don’t have the right broker as their partner.
All brokers are for profit businesses. There is no such thing as a charity broker, and as a result of this, they need to make money one way or another. And you’ve probably guessed that it’s you that ends up paying them. Brokers make money in a few different ways, but one easy way for them to do this is by creating a wide spread between what you lose when your trades are wrong, and what you gain as a return when you’re right. For example, on a binary option, there is only one of two outcomes that can occur: you are right on your prediction or you’re wrong. One earns you a return, the other loses money. But, you will find that when you’re wrong you lose more than when you’re right. This is the same principle that casinos operate on. They anticipate people earning money, but many more will lose money, which over time gives the broker a large profit rate.
Binary options are beatable. But that doesn’t mean that you can rely on your knowledge of your favorite asset’s price movement alone to make money. You need to do your research and have a long term point of view so that you can survive the ups and downs that are inevitable in this field, and instead of losing your money, find that over the course of time you are earning money.
Experts in the field like to use a term called expected value to measure this concept. When something is a +EV move, it will make you money over the course of time. If something’s a -EV move, you will lose money over the course of time. Finding what is +EV, and avoiding the things that are -EV are what creates money for you as a binary options trader. We looked at rates of return earlier, and we decided that a higher rate of return has a better expected value than a lower rate of return. But if you are not trading at a long term rate that is profitable enough to overcome the spread that binary brokers use, then a good rate of return is still a -EV proposition for you and you should spend time developing your trading skills. Little things like this are what separates a good trader from a great one, and over the course of time, this is the edge that will make you far more money than if you are not paying attention to this. And it all comes from having the right broker on your side to help you create more favorable situations for yourself.