Should You Trade Binary Options on Your Mobile Device?
When you are reading through reviews of binary options brokers, you will usually find out whether a broker offers mobile trading or not. Some brokers allow you to trade on a mobile-friendly interface on an iPhone, Android, Blackberry, or similar device. They have webpages which are designed to display clearly and make it easy to trade on a small screen. In theory, this should allow you to be able to trade binary options anywhere you want, as long as you have an internet connection. This is generally seen as a positive feature and a boon for traders. One thing I notice hardly anyone ever talks about though is whether you should take advantage of this feature or leave it.
The only time this ever came up in a conversation for me was when I was speaking with an actual binary options broker, who said that she did not understand why anyone would ever trade on a mobile device, even if the feature was offered. I thought that was an interesting statement, given that it was from an actual broker and not a trader.
Having considered it carefully, I think there are pros and cons of mobile trading, and situations where you would and would not want to make use of it.
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Pros of Mobile Trading:
You can trade anywhere you want, as long as you have a connection. This seems like a pretty basic thing, and definitely a benefit. It is great to be able to trade at home, at work, in an internet café, or in some countries, even on public transit. There is no denying this is a good feature.
Trade anytime. Another benefit of mobile trading is that the flexibility in where you trade creates more flexibilities in when you trade. You might be able to trade during work or commute hours when you otherwise could not. You also might find it handy to have a mobile device on your bed stand to help you trade overnight.
Receive financial information on the go. If your broker sends out daily financial reports, and you are a fundamental analysis trader, you could make use of those reports throughout the day. They might alert you to a trade opportunity you would otherwise have missed if you were not receiving the alerts on your mobile.
Cons of Mobile Trading:
The small screen may inhibit some traders. While you may be just fine working with a small screen, not every trader will be. You might feel constrained by the lack of working space. The way we perceive our environments often reflects in our psychological state. The small screen may make you feel trapped, mentally cramped, or otherwise uncomfortable. Some people need space to function effectively.
Distractions. You may be tempted by the “trade anytime, anywhere” benefit to trade anytime, anywhere, even if that is not best. If you trade in environments which are rife with distractions, you may very well find yourself making foolhardy decisions, missing important signals, and losing money. This will be more of an issue for people who are easily distracted than people who are able to focus in chaotic situations.
Charting limitations. Perhaps the biggest drawback I can think of with mobile trading is the limitations it puts on charting. It is tough enough to read and use a chart effectively on a full screen; doing it on a mobile screen is nigh impossible. That makes it very hard to plan trades without making mistakes (or missing trades outright). Do those little charts included by your broker display well? Probably, but those are insufficient for real planning. You need charting software with solid capabilities to do well with binary options trading.
Best Practices for Mobile Binary Options Trading
With these advantages and drawbacks in mind, I have come up with some best practices for trading with your mobile device. I do not recommend that you do all your trading using your mobile. I suggest you take the following approach:
Plan your trades on your home computer. Give yourself the screen space to view your charts and make the most of them. Do not constrain yourself to planning trades on a mobile device.
Never allow mobile trading to induce you into trading in environments or situations where you feel rushed or distracted. You will not make good trading decisions this way, and you may end up missing important information which would help you appropriately enter or exit trades.
You may find it useful to use your mobile device to help you enter, monitor, or exit trades you have already planned on your home computer. You may spot an entry on your charting software, need to go somewhere, take along your mobile, and use your mobile to enter at the appropriate time and monitor the action. If you have to close out early, at least you can control the trade and exit, even if you are not at home. Note though that if you have insufficient data on your screen to guide you in your decisions while you are on the go, your mobile will not be particularly helpful for this either.
Another possible use of your mobile device is for overnight trading. Maybe you have a trade in progress and you do not want to constantly get up and walk across the room to your computer (or your computer is in another room) to monitor your trade or possibly close out early. If so, you could put your mobile device on your bed stand and activate audible alerts when price reaches certain levels. They will wake you up if there are changes. If you need to look at price or modify your trade, you can do it without getting up, and go back to sleep.
Mobile trading does have some real applications, and I see no reason to avoid it outright if you think it can help you to be a more active and profitable trader. Just be sure to use common sense and sound judgment when you trade on the go. Do some experimenting and demo test some trades with your mobile before you trade on your smartphone or other device using real money.