Trading in the stock market is in many ways similar to running a small independent business. For example, if you trade securities, you are exposed to the same financial risk as you would with any business. Those who receive a fixed salary can sleep peacefully, since in any case they will not have to return their earnings, even if the employer has suffered losses. But the one who works for himself will pay for each of his mistakes from his own pocket. Conversely, someone who works for himself and is successful in doing so will earn much more than the average employee can imagine.
Do you have an entrepreneur’s streak? If so, full-time trading is most likely a good fit for you. A newcomer will ask: “Mister, of course, I understand that I cannot count on super profits in the beginning, but can you guarantee me that I will earn an amount at least as much as the average salary?” Oops!!! This is a matter of the employee. A trader would never ask it. Getting paid is good, but becoming independent requires something more serious. A self-employed trader can work fewer hours and earn ten times the average salary, but he has to take risks. We warn you: without risking money, you will not come anywhere in trading.
Trading binary options gives you the opportunity to earn. The correct definition of work as a trader is one of the main components of success.
For those who think independently, it is not enough to be a simple employee… So the best options are either small businesses or trading. Both methods have their advantages, but they are clearer for trading. For example:
- Fewer obligations – for most businesses, it is necessary to have an office made of brick and cement, as a rule, it is rented. Renting is a long-term commitment. Rent payments, office maintenance costs, council taxes, electricity, water, maintenance, and more. Conversely, the trader works from home. Your in-line costs may rise slightly, but you don’t have a long-term commitment.
- Responsibility – for a business, it is necessary to hire staff, consultants, accountants, lawyers… This is a huge headache and a heavy burden of responsibility on those who undertake it, responsibility for those who depend on you. In the good old days, I was responsible for paying the salaries of my employees, and because of this, I stayed up at night for several years. But a securities trader does not hire anyone. Only him, the computer and the Internet. A huge advantage!
- Smaller investment amounts at the beginning – every business needs investment. The cost of transportation, office equipment, consumables, advertising, printed materials, renovation of premises and so on. Moreover, in addition to this minimum investment amount, you need working capital in order to ensure smooth operation before profits begin to flow. In order to engage in trading, you need a good computer, several screens and the capital necessary in order to open a trading account and have money for trading. And that’s it!
- Risk – closing a business is rarely painless. Business closes in difficult times. Debts are piling up, employees are pressuring to raise wages, banks are suddenly closing credit lines, leaving the business without an influx of oxygen. Assets and securities that are normally worth what you paid for are thrown away or sold for pennies. But a trader can limit his losses to a certain part of his investment. Show me at least one business where you can limit your costs!
- Opportunities – In most businesses, it’s hard to be creative. The sad fact is that most self-employed earners earn less than wage earners. A professional trader does not work in a competitive environment that limits his capabilities. There are no restrictions!
Not everyone is suitable for being a trader, just as not everyone can be a businessman. Starting a business – this requires return, responsibility, investment, risk. If I had to choose the field in which to start a business, then, of course, I would choose the one where the opportunities are above all and the risks are the lowest.
How to succeed
I have learned from my own experience that the chances of success for a novice trader who have to make a living from trading are much lower than those who have another source of income at the same time. For starters, I would recommend starting small and keeping your main source of income. Success comes slowly, but it comes, and if you also have a steady income, then this fact reduces the pressure that you need to earn immediately. If you have left your job or you have a transition period between jobs, do not count on profits from trading. If you don’t have all your hopes for trading, you will win. If you are under pressure to earn, you will certainly lose.
A successful trader has three components:
- In-depth knowledge and careful monitoring of the situation at the initial stage
- An adequate environment for trading is a high-quality computer and high-speed Internet
- An account with a professional broker that gives efficient charts and executions.
A chain is only as strong as its weakest link. Each of the components is a link in the chain, a link in the chain of your business. If you want your business to flourish, invest in every link, from the stage of accumulation of knowledge to the stage of daily use of tools (trading).
Tagged with: Binary Options Academy • The Psychology of Binary Options Trading
