I was reading something that Tripack posted up in another thread:
It got me thinking: is opening positions with large amounts really that bad? Especially if you've got a good strategy/trading system in place?
Let's say that you want to do 4x $50.00 trades in one day. Now, you might say that you could blow your account if you've only got $200 in it, for example. But, isn't the risk kinda equal if you attempt to do 20x $10 trades?
Like everyone I have an opinion on this based on my experience. To answer this question you will have to look at yourself and manage your expectations. I have traded big positions way back in the day it is all I used to do. 1 -3 positions in a day turning over 3 - 5K most of when I lived entirely off of Binary options alone. The Op mentioned $200 and if that is what you have to trade with then IMO it is better to do smaller bets. You will be betting on the edge of your strategy or your ability to trade and not just betting on a handful of bets over a short period of time. A really good bet does not come along every 5M to 1H so why trade like it will.
Who wants you to trade as large a position as you can?
Ummm the broker maybe.
Who risk the most on the Bin?
Ummm you surely $100 to win $70 - 80 for example ( Traditional not on 0-100 style we are talking EU style I assume )
What happens when you put on an EU style Bin and are stuck holding it?
Lots of tech makes it easy to toss your trade like a hot potato and if it is bigger it will especially get tossed I would think because the broker is there to make money just like you. When it looks to risky they get rid of it and the market moves against you as a result.
Is the market going anywhere?
No so IMO there is really no need to go beyond 2 - 10% on a single trade. Trade more when you have more to trade with and are comfortable losing it and have more of your own personal stats based on a few hundred trades that show you have an edge as a trader. If you really do have such an edge then why rush? The edge will not go away and will likely just get better with time. Good traders think of how much they can make on a trade but great traders think of how much they can make and lose on each trade.