Binary Options Trading - More Like Roulette Or Poker?
The answer? That pretty much depends on you. A gambler who plays poker with no strategy, practice or skill is going to be casting his fate to the winds as much as any roulette player.
In this sense, binary options is more like poker—but can function just like roulette if you don’t invest some time and effort into yourself and your trading strategy. If you don’t have a strategy that you’ve tested and proven time and again, no matter what your criterion for a trade is, your trades are ultimately as random as the spin of the roulette wheel.
Make It More Like Poker - Mix of Skill And Luck
If on the other hand you do put some time and hard work into developing a trading method which you then test on historical data, you’re learning how to mitigate risk by removing some of the randomness from trading.
Random events will always influence the markets, and there is no such thing as a trading method or signal which is right 100% of the time. Just like pocket aces do not hold up all the time.
In fact, you should feel very proud if you even manage something like 80-85%. When you remove randomness from yourself, however, you reduce your risk and potentially increase your win percentage. In terms of the casino comparison, this means you’re becoming more like that professional poker player who comes up with strategies, practices, and has consistent success.
Is there anything wrong with playing roulette, whether literally or as a binary options trader? Not on the face of things, no. But that’s only the case so long as you know that’s what you’re doing. Knowing that you’re gambling without managing your risk is fine so long as you still calculate that risk, understand it, accept it, and manage your money accordingly.
Gambling can be a fine form of entertainment, as can binary options trading, so long as you don’t confuse it with making a living. Regardless of whether you’re trading for fun or profit, however, it’s important to make sure that you don’t’ invest more in your trading than you can afford to lose.
In other words, don’t quit your 9-5 job and throw everything you’ve got into binary options trading. Set aside a reasonable entertainment budget if you just want to have fun, or trade with a small bankroll and build up from there if you want to become a pro