Most people start a new binary options account thinking in compound interests to make that balance grow exponentially and only a few of them withdraw their initial deposit once they first double their accounts. I’ll give you here some reasons to do that.
Example: You deposit $250 and trade until your account is at $500. Then you withdraw $250 and start over with $250 from the broker and your $250 will be back in your pocket:
- You will be trading now with your profit. In other words, what’s at stake now is the broker’s money, no longer yours!
- Your psychological will be much more at ease. Now yes you can start thinking in compound interests.
- If you lose control and blow that account, you’ll still have the amount of your initial deposit intact to start over from scratch and repeat the process.
- With your own money not at stake, you will feel less pressure when you trade. You won’t fear losing that money with such intensity. It will definitely influence in the quality of your trades.