It was bound to happen sooner or later wasn’t it? At the pace technology is advancing you can expect that there will be an app for your smartphone that enables you to do most things you’d never even consider using a phone for. Mobile trading is the latest of these things and there are a number of arguments for and against.
You can’t really blame binary options brokers for jumping on this particular bandwagon. After all more trades placed equals more profits for them, right? So the mobile trading revolution was always bound to happen once the technology caught up. Mobile trading offers some interesting advantages in that no-matter where you are or what you are doing, you can always have access to your preferred assets. So say you are in a bar or a restaurant and you just catch wind that something went down in the Middle East, well you’re only a few swipes (I was about to say clicks, oh how the words change…) away from finding out how this breaking news is affecting oil prices, from there you can easily get into your trading account and lock in a timely Call trade on oil that if caught at the right time, will almost certainly see you making profits while you are away from your desk. Sound’s awesome right?
Well it is, but there’s also a downside to this kind of trading activity. When exactly do you turn off if you’re carrying your trading platform around with you? It’s a very subtle distinction with things like this and a fine line between being proactive and completely addicted. Studies show that overtrading (which apparently men are much more guilty of than women) is directly related to placing less profitable trades overall. Trading is all about being selective, placing the right trades at the right time, when this golden ratio is exceeded things begin to go awry. And having your phone always connected to the markets, for some at least, can be a recipe for disaster. We’ve seen this with 60 second trades from a desktop pc, not a smartphone, they are so addictive due to the feedback cycle being so short that even experienced traders find themselves over-trading, placing unnecessary risks and ending up trying to chase their losses, another sure-fire way to financial ruin.
It is almost too appealing to keep monitoring your preferred assets and locking more and more trades in. A perfect example is this: how often do you find yourself pulling out your phone and playing around with it even though there’s nothing really to be done with it, in awkward social situations, when you’re in a waiting room, when you’ve arrived somewhere early and the people you are there to meet haven’t turned up yet? You see where I’m going with this now huh? That’s right, if you had your broker’s trading app loaded onto that phone then it’s almost certain that in those types of situations you’d be trading. This is not good for your risk capital, take it from us. Sure you may get lucky and place some pretty jammy trades in your first few efforts but on a long enough timeline you will probably end up making a net loss. And the reason for this is obvious, when you’re mobile you have none of the benefits of analysis that you do when sitting at a desk with the express purpose of conducting a proper trading session. You won’t be browsing the headlines, monitoring your technical indicators, comparing your previous trading activities with the market action of the current day. All you’ll be doing is basically a scaled down version of your ordinary trading activities which is tantamount to playing a trading videogame, only with real money!
And don’t think binary options brokers don’t know this either. It’s their business to get you to trade more. It’s one of those weird cases where yes, the idea is smart and it can work out positively for you in a very limited number of cases, being mobile and having access to your trading account can be a terrific thing, sometimes, most of the time however it’s like carrying a grenade in your breast pocket that could explode your finances at the pull of a pin. And since people are notoriously bad at accurately appraising their own decisions, with a great deal of self-justification always coming into play, it’s probably best to give these trading apps a wide berth. We would say have them loaded on your smart phone and put them in a folder labelled “open only in the case of emergency” however we know you’d just mess with it anyway. As a result steer clear. Keep your trading life and your outdoorsy life as separate as possible. Think of it in this way, is not having a mobile trading app going to prevent you from becoming a binary options millionaire? Probably not, hey? So there you have it.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.