Another thing to take into account is the timeframe. A good trader can make 5 percent or more per year on a consistent basis. Making 5 percent out of a single trade then, can be the mark of a superior trader. Of course, one trade is not enough to measure the strength of a trader. Some trades will be profitable, others will not be so.

In short, the measure of a good trader is taken over the course of a longer period, in percentages. If you make a $100,000 profit, this means very little without these two descriptors. Making $100,000 over the course of a year is great, but you cannot truly appreciate how good the trader is at their job unless you put it in percentage. A 100 percent profit over the course of a year is a phenomenal feat. Having these descriptors puts things into a frame of reference and will be a more complete assessment of exactly how successful the trader is.

If you treat every trade the same, you will get average returns based upon the mean of all profits and losses within your results. This is a waste of time and energy on your behalf. You want to have above average results when you are trading—who wants to settle for making the same as everyone else? As a result of this, effective and profitable traders are able to determine how exactly to adjust their trading capital based upon the edge that they feel the market has in store for a specific trade.

This is quite complicated to do, but these Binary Options traders will pick and choose only the trades that they see has the most potential, and adjust their trading capital so that the most profitable trades have the most money at risk. A lot of this is theoretical, but a successful non-self weighting trading strategy will put more money where there is the most potential. Smaller profit margins see fewer dollars being invested in them, if any money is put to risk at all.