Understanding 60 Seconds Binary Options Trading

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Understanding 60 Seconds Binary Options Trading

All over the world people want to make money online for various reasons. The popularity of binary options as an investment instrument has been growing steadily over the years because of its simplicity. To trade binaries, you need to open an account with a binary options trading platform provider. A number of platform providers offering varied trade types have established operations over the years. The advantage of using binary options market to achieve your financial goals is that you will be able to work with a great deal of certainty as the profits you can earn and losses you might incur are known you even before you buy a contract.

Binary options in varied assets and expiry times are offered by brokers. The 60 seconds binary options have been introduced in order to cater to the needs of traders who want to be highly active in the market. In the binary options market, 60 seconds binary options appeared for the very first time on SpotOption’s white label platform in 2020. TechFinacials introduced it in the following year. The credit for introducing the 60 second options in binary trading goes to the broker TradeRush. The aim of this article is to provide you with some understanding about 60 seconds options so that you can use it to your advantage.

60 Seconds Binary Options – What Are They

60 seconds binary option refers to those binary contracts that have an expiry time of just 60 seconds. As the expiry time is very short, you can carry out hundreds of trades in a day. In a matter of 60 seconds you will know whether your prediction is right or wrong. As in the case of traditional binary options, you can purchase a Call if you believe the price of the asset will go above the strike price or a Put option if you determine that the asset’s price will be lower by the end of the expiration time of 60 seconds.

This trade type is not suited for all traders. It calls for a careful approach to managing money and development of the ability to recognize potential trading opportunities as they arise. You need to have a clear plan in place and know when to use 60 seconds options to reap substantial profits quickly.

Advantages

The key benefit of using this trade type is that you can take advantage of the fast movements in the price of an asset. Markets fluctuate all the time and changes often happen almost instantaneously, especially in technology and telecommunications sectors. If you have developed the capability to sense the indications or signals and execute 60 seconds trades, you could reap profits in a short period of time.

Additionally, trading with 60 seconds binary options enables you to create momentum with your trading strategy. Even if you are unsuccessful in your trade, you’ll find out within a minute so you can learn from that mistake and then refine your strategy. These options enable you to speed up your learning curve and assess the sensitivity of certain assets to changes in the markets.

Moreover, 60 seconds binary trades enable you to create momentum. You may not be successful every time, but you will be able to learn your mistake in just a minute and refine your strategy. As a result, it helps you to reduce your learning curve and this in turn helps you to earn more profits.

Factors to be Considered When Trading 60 Seconds Binary Options

Before entering into 60 seconds trades, you need to take a few factors into consideration. First of all you should be extremely familiar with the binary options trading platform you are working on. You should never place 60 seconds option orders on a broker platform that you have never tried or test and risk your hard earned money.

Once you are familiar with the platform, you should test its efficiency. The idea is to make sure that the platform executes your trade at the expected price and exact time. This is because time is the essence of 60 seconds binary options trading. Even the smallest change in price can wipe off your investments.

Finally, you should check out the trading parameters as they form the basis of your trades. It is important that you have all the parameters thought out beforehand because you will be hard pressed for time when dealing with 60 Seconds binary option contracts.

5 Tips for Trading 60 Seconds Binary Options

#1: Follow economic trends: Multiple economic factors affect the price of financial assets. It is, therefore, important keep yourself abreast of the economic news on a daily basis.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
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    Best Choice! The leader in our ranking!
    Perfect for beginners!
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  • Binomo
    Binomo

    Good choice for experienced traders!

#2: Read the news: You also need to go through general news because they also influence the financial markets. Supply and demand of commodities, stocks and currencies also impact the prices of assets.

#3: Use trading signals: Learn to recognize the relationship between the values of assets. Make use of the services of signal providers

#4: Learn some good trading strategies: A host of advanced strategies for trading 60 seconds binary options are available.

#5: Make use of Technical Analysis: This is because technical analysis is all about recognizing trends.

60 Seconds Binary Option Trading Strategies

Rapid Fire, developed by iOption, involves you making several fast investments repeatedly in small increments. Some trades end in-the-money, while some others will finish out-of-the-money. A few wins are sufficient to cover your losses.

The best time to trade 60 seconds options is when the markets are volatile. Such a market condition is often presented when high-impact news is released, by systemic market activity or during market opening.

Money management is also an important aspect to be kept in mind when trading 60 seconds binary options. You should limit your investments in the beginning and increase only after gaining some experience.

Summarizing, you need to go beyond the ability to correctly predict direction of price movement of an asset. You should not be tempted to employ the martingale technique to make up for the losses, if you happen to have three unsuccessful trades. This can badly hurt your finances. It is, therefore, important that you make informed decisions and follow the strategy that you have practiced well to ensure an acceptable measure of success.

Do You Have a Trading Plan for 60 Second Options?

Do You Have a Trading Plan for 60 Second Options?

Having a trading plan is important no matter how you trade, but for a 60-second trader, a plan is even more critical. Why? Because there is a lot to think about and deal with when you trade, and when you are trading fast, you have even less time to get it all done. For a beginning trader in particular, it can be easy to forget to take important steps, which can cost you money. Even if you have been trading for years though, a plan can be helpful, because it can keep you on track and oriented. Even veteran traders can make mistakes, and why make mistakes you can avoid? Learn about 5 of them here.

Here are some of the elements which should be included in your 60-second binary option trading plan:

A trading method or system.

This is one of the most important elements in any trading plan. This is a set of rules for entering and exiting binary options trades. It tells you what to look for in terms of indicators or events, and what constitutes a good setup. It also tells you when you should consider closing out early or doubling up or rolling over. It is helpful to have this written down. Again, when you are trading 60-second binary options, things go fast. You want to have your trade rules in front of you so that you can immediately spot any changes that might prompt you to take action during a trade.

Money management rules.

How much of your account will you risk on each of your trades, as a percentage? How will you calculate that percentage?

When will you look at the charts?

As a 60-second trader, even if you are using trade alerts (click here to learn more), you are probably planning on spending a fair amount of time sitting in front of your computer looking for great trading opportunities. It’s tough to manage 60-second trades from a distance. If you do use alerts, odds are you’ll be using auto-trading to help you execute trades, since the opportunity may be gone by the time you get to your computer to manage a trade.

Most traders who work with very short expiry times like this will plan to spend a couple hours a day in front of their computers, looking for entries and actively trading. You will need to figure out the best days and times based on your schedule and the assets you are going to be trading. Make sure to not only plan times to trade, but also time off. You need to take breaks now and again, and you should not be spending all your time 24/7 in front of your monitor. Also in the scheduling arena is the question of how many trades you will be in at a time. Many people can only handle one. As a 60-second trader, you probably can handle several at most.

Assets to trade

You may trade a lot of different assets or only one or two. It is all up to you based on your trading method and your schedule.

Checklist

A plan may sound a bit like a checklist, and in a sense it is one, but it is a broad checklist, and you also are going to want one for trading in real time. This checklist will include elements like this:

Are my entry criteria all met?

Is the trade located in a sound context?

Am I already in another trade?

Did I correctly calculate my investment amount?

And so on. The idea is that before a trade, during a trade, and after a trade, you have a set of instructions to guide you. That way even in the thick of the action or while you are trying to handle difficult emotions, you can keep on track. You might even have checklist items that help keep you focused. “Am I in the right frame of mind for trading?” might be one question you ask yourself. If you are not, you might defer trading until later. You can also have checklist items for while you are in a trade. One example might be, “Do I have reason to believe that rolling over in this trade will make me more money?” After a trade, you can also have a checklist with questions like, “Did I follow all my trade rules correctly? If not, what did I do wrong?”

Plans to develop self discipline.

As a binary options trader, you are relying on your own self-discipline to keep you profitable. All of these trading plan elements are useless if you don’t pay attention to them, and no checklist in the world will keep you focused without any follow-through. So part of your trading plan should include strategies to hone your own discipline. This is a different process for every person.

For some traders, following a plan can in itself be an exercise for improvement. For others, it may help to make other plans, like deciding to get up by a certain time each day, eat well, or exercise regularly. For traders who have a tendency to overwork themselves, discipline can even mean making time regularly for leisure and socializing. However you choose to approach this, it is key to remember that you cannot succeed at trading unless you are able to develop this aspect of your personality. The good news is that nobody is born with self discipline, but anybody can develop it with enough determination.

Why are you trading?

Answering this question should comprise one last aspect of your trading plan. You need to be in touch with your personal motivations and goals. Some goals are reasonable an realistic, while others are not. Unrealistic goals are not necessarily unachievable, but they are the types of goals which drive reckless trading decisions. A good goal might be, “I intend to become a profitable trader who can achieve repeatable, consistent results over a long time frame,” or “I want to trade 60-second options for a living.”

An unrealistic goal might be, “I want to make $500 an hour trading binary options.” It is not impossible to do, but it promotes foolish decision-making. There is nowhere in the world of binary options where this is more common than with 60-second options, unfortunately. The idea of making a huge amount of money within a one-minute time frame is so tempting that many traders are drawn in by slogans like, “Make $500 an hour,” or, “Make $100 in just one minute!”

This is not what trading is about. If you attempt to set up a profit quota like this, you will make foolish trades out of desperation in order to meet your hourly goal. Instead, why not strive to meet the goal of making regular, repeatable profits? You could also set goals like, “I want to become more disciplined through my trading and become better at following the rules I create for myself.” Do that, and the money will take care of itself. Monetary gain is the inevitable result of making sound trading decisions which lead to profit.

After putting together a trading plan but before jumping in check this out to get a few more tips.

Is 60 Second Option Trading a Form of Gambling?

Trading has always been given something of a bad name among “ordinary” people. In other words, people like you and me, who don’t work on Wall Street and want to trade on our home computers or our mobiles. And there is no type of trading that suffers more from that bad wrap than intraday trading, the type of trading where you open and close your position within the same market day. Most binary options trades are day trades. Some brokers offer longer expiry times, but they are not typical.

60-second trades are the fastest positions of all, opening and closing in just one minute. You will probably hear a lot of people say that scalping is way too risky, and that 60-second trading is nothing more than gambling. They’ll say that binary options brokers are scammers, operating in the market only to take your money. How valid are these concerns, and where do they come from? I am going to break them down so you can make up your own mind.

Binary Options Trading is “New”

“Retail trading” refers to the kind of trading you do as a private individual at home on your computer. A couple of decades ago, retail trading was not a big industry. The internet has made it very accessible, however, so it has become a big deal in recent years. Binary options trading in particular has only risen to prominence in the past couple of years. Most of the brokers operating opened their doors in 2020 or 2020, though binary options have existed as a trading vehicle for longer than that. People are often afraid of anything that is new. They think, “trading is only for those guys on Wall Street. So this must be a scam.” Click here for potential scams That is a misconception, however, and has no basis in reality.

Everyone Has a Story

If you start telling other people about your desire to become a binary options trader, you will quickly find out that seemingly everyone you know has a tragic story about the downfall of a friend or family member who lost it all on binary options (or some other type of retail trading). The person telling you the story generally does not know much about it, which you will discover quickly if you ask more questions about the details. It isn’t that there isn’t someone they know who lost it all in binary options trading, it is just that the person telling you the story is not educated enough in what happened to explain to you the real reason for the loss. Which is …

Most Traders are Gamblers

Is trading a form of gambling? Well first, define gambling. If gambling is any activity with a significant element of risk, then you are gambling each day you wake up and head to the office, especially in this economy. If your boss doesn’t like his coffee this morning, you could get canned. Everyone has a story about that too since the recession started. Binary options trading carries risks—like every other activity you can engage in to make money.

Whether or not trading is defined as gambling maybe comes down to the behavior of the trader more than the nature of the activity. If you do not respect the risk involved in binary options trading, then you are a gambler. If you do respect that risk, do what you can to mitigate it, treat your trading as a business, and do research and testing as you would for any real business, then you do not have to trade like a gambler. You can trade like a professional.

Most of those horror stories you hear about someone who “lost it all” boil down to bad trading decisions. They may be about people who traded blindly, without money management rules or a system in place, who quit their day jobs before they were ready or invested all their money in binary options, or who couldn’t manage their time. If you trade irresponsibly, you will join their ranks. But if you follow trading rules, test your trades, and develop a sound plan which works with your schedule, you may well become profitable instead. Click here to learn more about developing a system.

Trading Fast is Tough

60-second options suffer from the “gambling” reputation more than any other type of trading. Why? Because they are tough, plain and simple. The majority of traders are not cut out to trade 60 second binary options. This should not be something you look at as a “weakness.” 60-second trades represent one extreme end of the scale in terms of expiry times. Most people fall in the middle in terms of what they excel at (picture a bell curve). Not as many people are going to want to do position trades where they hold their positions for weeks, and not that many are going to be able to handle the speed and high pressure of trading super fast.

That does not mean that you can’t handle it though. The only way to find out is to start testing trades. You absolutely must open up a demo account to do this live if you want to trade fast, because it is the only way to know if you can handle the speed and still make good trading decisions. One advantage of testing 60-second trades specifically is that even with a demo account you can only hold open for a couple of weeks, you should still find a ton of different options trades you can test out within that relatively short time period, so you can build up a lot of experience before you use real money! Find out which brokers offer demo accounts here.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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