The difficulty with trading while working a full-time job arises from the fact that trading itself is a full-time job. This is true pretty much regardless of how you structure your trading hours, because you will be spending a lot of time researching and testing. Hopefully you enjoy trading! This will keep you from burning out. Trying to actually place your trades can also pose a challenge if those trades overlap with work or sleep hours.
Wouldn’t it be awesome if you could trade binary options for a living and quit your day job? Well, if you want to be able to do that, you’ll have to get good enough and be making enough money to consider doing it rationally—or you will be very sorry. Sadly there are a lot of binary options affiliate advertisements which tell would-be traders to quit their day jobs, but this is a really bad idea for someone just starting out who does not have a ton of capital and a reasonable amount of experience and profitability.
Now the question is:
Is It Safe To Start Binary Options Trading as a Job?
When I first started my research into binary options trading, I thought that there was no way this could ever be a safe, low risk investment. While I still don’t believe that binary options trading could ever be a low risk process because by nature, betting is risky; I do believe that if you play your cards right, it’s possible for binary options trading to be safe…even safe enough to build a career around it. Here’s what brought me to this conclusion:
- People Build Careers Around Betting – Even if you look at binary options as betting, you can’t argue the fact that people build careers around betting every day! As a matter of fact, DC at Young Adult Money recently brought a post on the Wall Street Journal to my attention. The post outlined a story about a young man that made hundreds of thousands of dollars a year playing fantasy sports. If you can do it playing fantasy sports, you can definitely build a career in binary options trading!
- Some Assets Are Highly Predictable – One of the biggest things I’ve learned in my research on binary options is that some assets are highly predictable. For instance, we know that when there’s turmoil in the middle east, the cost of crude oil will rise. This information can prove to be incredibly profitable in the binary options trading industry. Using this information to your advantage, I can definitely see how you could possibly build a career around binary options trading.
- Proper Diversification Can Almost Guarantee Profits – As with any other investment vehicle, diversification is key when it comes to binary options. As a matter of fact, if your portfolio is displays proper diversification, it’s almost hard not to make money!
Let’s look at another question:
Do you need to quit your job to start full-time binary option trading?
I always say that if you are making money out of trading now, in your current situation, whether you are employed or not, you shouldn’t make any changes. If it works, don’t fix it! But on the other hand, maybe you started trading with the goal of quitting your job and sustaining yourself with the profit you make from binary options. Or maybe you are simply not decided yet. In any case, here’s why quitting your job might be good for your trading… or not.
Advantages taking Binary option as your only job
If you quit your job, you won’t be stuck 8 or 10 hours in an office or wherever you work and this will give you more time to focus on trading. Coming home from work late in the afternoon and seeing you missed good trading opportunities can have a negative impact on your future trading decisions. You could spend that time trading and making money.
Another thing related to time is the fact that you could allocate more of it to learning and improving your skills. There’s a lot of free information about trading around the Internet, but your job could prevent you from reading it and thus upgrading your trading style.
If you don’t have a steady income generated by a job, you will have a more responsible approach towards trading. You cannot treat trading as gambling or a simple hobby anymore because your bills are paid straight from the trading business.
When trading is your only income, you will apply better money management techniques and you won’t jump into trades just for the thrill of it. If you backtest a strategy and you see it is most profitable on a 15 minute chart with an hourly expiry, you will stick to that time frame, without placing 60 seconds trades just because it’s fun.
Disadvantages of taking Binary option as your only Job
The uncertainty of your income can affect negatively your trading. You don’t know how much money you will make by the end of the month and in fact you don’t know for sure that you won’t lose some. This can make you trade with fear of losing or not making enough money and fear is one of traders’ worst enemies.
Overtrading. This is something common among people who just quit their jobs to have more time to trade. Once you quit your job, you have roughly 10 more hours you can allocate to trading and this can make you want to trade more than normal. After all, it’s boring to stay in front of your screen and to just watch all those assets move without trading any of them.
Having all that extra time can make you want to improve your trading system. Although there is nothing wrong with improving something, trying too much to filter out bad trades can have a negative impact because those filters you apply (indicators, extra rules for your strategy, etc.) will eventually prevent you from taking good trades as well as bad ones. That means that your original strategy – the one you quit your job for – has now changed and so did its accuracy rate. Maybe it’s better now, but the fact is you don’t know for sure.
Let’s not forget about brokers: if you don’t have a job and you rely exclusively on your trading income, what will happen if your broker delays your withdrawals? You cannot delay paying the bills using the excuse “My broker is still processing my withdrawal”. Of course, this can be avoided if you trade only with top notch brokers so make sure you choose wisely.
Tips for balancing your day job with a full-time trading job
- Choose a market with hours that do not interfere with yours.
Binary options brokers allow traders to work with stocks, indices, currencies, and commodities. You might prefer to trade something like Forex or commodities because that way you can trade after work, even in the middle of the night. This may be a bit more difficult for traders in the US, unfortunately, since many binary options websites restrict US traders to stocks and indices (no, trading FX and futures is not illegal in the US; but you may have a difficult time finding a way to do it using binary options).
- Choose expiry times which give you time to manage your trades.
While 60-second options and other “fast” trades may look attractive to you, they may not fit as well into your schedule. You will probably spend less time each week managing swing trades (trades that span a few days), or longer-term trades which you hold for a week or longer. You will need to look at those trades regularly to make sure you do not need to take action (early closure, for example), but they may still be easier to deal with. This post gives pros and cons on 60 second trades
- Try to set aside time for trading.
This may not be possible, but if you have a job with flexible days and hours, you could for example request that you be given hours or days off which would allow you to spend time trading. This also may make it easier to place “faster” trades if that is something which you are really interested in doing. You could even do this while still working full time hours in some positions.
- Don’t succumb to the temptation to auto-trade.
There are some good automated trading systems out there, and they can be helpful, but when you are just starting out, it is a good idea to stay as involved as possible with your trading. There is nothing which can replace your own abilities as a trader, and if you rely on automated binary trading software, there is a good chance you will fail sooner or later, and never develop the skills you need to be adaptive, flexible, and successful trading binary options. Alert services can help you to spot good trades while you are busy, which is great. But you are an irreplaceable part of your trading plan. It might sound like a wonderful idea to make a living off of someone else’s hard work, but if it were really that easy, wouldn’t everyone be doing it?
- Choose a broker which offers mobile trading.
“Bring Your Own Device” is a growing trend at workplaces around the world, and there is not a whole lot that employers can do about it. Not all positions give you enough freedom to be checking your mobile device and placing binary options trades throughout the day, but there are many jobs which do. If you are fortunate enough to be in one of those positions, consider bringing your mobile with you and trading with a broker who offers mobile trading. You can trade on the job and at your commute this way. Find a mobile binary options broker here.
Balancing two full-time jobs can be very difficult, and at times, downright overwhelming. But you will be grateful in the long run that you did not quit your day job before you were ready. You want to be putting money in to your trading account, not taking money out of it to pay your bills! Only by balancing your finances can you grow your account. Support yourself with your day job, and think of your trading as an investment in your future, because that is exactly what it should be—until the day comes when you are truly profitable enough to break free from the corporate life.
One final Advice: Beware Of Shady Brokers
I now realize that a career in binary options trading is more than possible; which is incredibly interesting. Nonetheless, I want to share one more thing that I’ve learned about binary options as my career writing for many top websites in the niche has progressed. Unfortunately, there are tons of binary options brokers out there like Banc De Binary (Who I refuse to link to) that have been known for taking advantage of their investors. With that said, it’s incredibly important that if you pursue a career in binary options trader, you pick a quality broker. No matter what broker you choose to work with, do yourself a favor and make sure you can trust them first.
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