Table of contents:
- 1 What is 60 second trading with binary options?
- 1.1 Different 60 seconds trading strategies:
- 1.2 Momentum breakouts from sideways phases
- 1.3 Trend continuation pattern
- 1.4 Only trade when there is enough movement in the market
- 1.5 Money management as the key to success:
- 1.6 Use a binary options strategy
- 1.7 Remain flexible
- 1.8 Careful Entry
- 1.9 60 second options – Choose the right timeframe
- 1.10 Using Binary Options Tools
- 1.11 Pay attention to the yield
- 1.12 Choose the right underlyings
- 1.13 Ad hoc news and economic calendar
- 1.14 In 5 steps to the first 60-second trade
- 1.15 Conclusion: 60 seconds Trading can bring fast profits
The Binary Options 60-second trades have a relatively recent history but are offered by many brokers due to the high demand. The attractiveness for very short-term oriented Binary Options traders lies clearly in the chance to achieve 60% to 100% returns within just one minute. Read about our experience with 60-second trades and see what strategies can be used to increase your chances in short term trading.
What is 60 second trading with binary options?
The 60-second trades are almost always the classic call/put Binary Options trading where the trader simply determines whether prices will rise (call) or fall (put) during the life of the Binary Option. With 60 second trades, the duration is limited to exactly one minute, so that friends of ultra-short-term speculations with high return chances will get their money’s worth.
On the trading platform of the Broker IQ Option, which is particularly well known in the world, high returns can be achieved with 60-second trades. As is well known, yield does not come without risk, so you should choose your entry points very carefully. If you are wrong, the freely chosen stake will be lost. With IQ Option you can already trade from 1 Euro or Dollar in the Binary Options 60 seconds mode so that you can approach short term trading even with low stakes.
Conclusion: 60 seconds options are mostly offered in the classic call/put trading.
Trusted Binary Options Brokers which are offering 60 second trades:
Different 60 seconds trading strategies:
Trading such short-dated options is very special and highly speculative, so the following points should be considered. First, it is essential that there is movement in the market, as the price must move in the forecasted direction within only 60 seconds.
Momentum breakouts from sideways phases
Furthermore, you have to have the momentum on your side. That’s why breakouts are a very good strategy for 60-second traders, no matter whether the market is trending up or down – with a call or put options, both market directions can be traded.
The following chart shows a breakout from a sideways phase in the AUD/USD currency pair. With a put option, you can bet on falling prices and have probability on your side, but the timing must be perfect. Speed in executing the trade is also important. Especially breakouts often happen explosively and are not easy to trade. On the other hand, extremely high returns can be expected if the trade is successful. In contrast to long-term trades with a Binary Options strategy, speed is the key.
Trend continuation pattern
An almost even better tip for 60-second trades is classic trend continuation patterns as shown in the chart below. An uptrend in gold continues after a short sideways phase. The probability of further rising prices is relatively high and can be used with a call option.
In this case, the trade is successful (the trend continues as expected) and a 94% return is achieved within 60 seconds. Professional traders take even better advantage of such patterns with the ladder strategy. Here several positions are connected in series and trigger each other. Only when an option no longer ends in the money, no new positions are opened. This procedure is so popular that many brokers now even offer it as a ladder option, which allows the automatic opening of several options in a row.
In any case, in 60-second trading, one must always be aware that chart formation in such a short-term timeframe does not work as reliably as with long-term commitments. With the following Binary Options 60 Seconds tips you can increase your chances:
Only trade when there is enough movement in the market
Volatile underlying assets such as gold or oil are interesting for 60-second trading, for example
trading in disoriented markets should be avoided, whereas trend continuation patterns and outbreaks are very promising.
If you are aware of the risk, you can achieve extremely high returns with the Binary Options 60 second trading within just one minute – thrills guaranteed!
Money management as the key to success:
Probably the biggest mistake that newcomers to binary options trading make is to neglect Binary Options risk management. However, especially when trading with short term options, this can be a short pleasure. If you do not control your investment here, you may have lost all your capital within a very short time.
Therefore, traders should always take the most important basic rules to heart:
- Long loss series must be taken into account without losing too much liquidity.
- The loss of the capital invested per trade should never hurt.
- It follows that as a rule, no more than 10 percent of the total capital should ever be invested in a trade. Even better is 5 percent or lower.
Turbo options are also psychologically challenging, even for experienced traders. The human psyche always has the need to compensate for losses and therefore takes more risk. Those who do not know this pitfall and strictly adhere to their money management will most likely make bad decisions that can lead to frustration and overall loss.
Use a binary options strategy
Not only the money management should give a suitable framework for binary options 60-second trading. It is equally important to standardize the individual stakes. Money management should determine how high a stake is and the maximum number of positions that can be opened, while the strategy determines when a trader opens a position. It, therefore, determines the conditions for this and is generally oriented primarily to trading signals.
Those who follow a strategy in trading Binary Options have the great advantage that they can also track their own psyche in this way and almost completely rule out human error. If he then documents his successes and failures in a trading diary, he can evaluate and improve his strategy on this basis. If you simply start trading, you have no chance at all. Those who do not trade according to certain guidelines cannot decide which factors lead to success and which do not. This is why it is so important to use a strategy. Although documentation also requires more effort, this is the only way to increase the success rate for short-term options.
In the case of short-term Binary Options, knowledge of the underlying asset tends to be of secondary importance. It is more important to master chart analysis. Most traders, however, go for one or two markets. This is also quite useful for medium to long-term investment horizons. However, if the Binary Options run for 60 seconds, market knowledge is not crucial. All traders need to do is keep an eye on the economic calendar so that they don’t miss any important dates and can trade for important news. Regardless of this, it makes sense not to trade the underlying that is best known.
Instead, the market conditions should match the traded short-term strategy as closely as possible. It is therefore also worthwhile to look for interesting opportunities outside the usual underlying. However, traders should not overdo this either. Otherwise, there is a risk that they will not take advantage of any opportunities at all because they cannot commit themselves properly, or miss them in their search for other assets.
Trading in Binary Options is considered highly speculative anyway. The risk is further increased by the extremely short-term maturity of turbo options. It is therefore important to approach the topic and this type of financial product slowly. The optimal approach would be:
Scanning: Learn everything you need to know first, find out about different strategies and brokers. Learn at least the basics of chart analysis and find out about the behavior of markets. The psychological basics of trading are also important.
Demo account: Now the first application of the knowledge takes place in a free demo account. Such an account is offered by many binary brokers. It is regrettable, however, that these are usually limited in time or in terms of game credits. It is therefore often necessary to open Themaicon overview demo accounts with different providers. The advantage: In this way, you get to know different options brokers and trading platforms and find the best broker for you.
Starting to trade: Since 60 seconds options are even more difficult to trade, it is recommended to start trading with longer-term binary options first. This is the right time to start if you can manage to stay profitable for several trades in the demo account and know why. If you haven’t had a few important false trades in the demo account, you will most likely need to learn more about Binary Options trading before investing real money.
However, this step is not mandatory. If you want to focus on turbo options from the beginning and know this in advance, you don’t necessarily have to try trading with longer time periods. They also often react differently. However, it is worthwhile to start with longer-term options simply because beginners have more time for decisions and can thus improve their decision-making ability.
Binary Options 60 seconds: Those who have no problems with longer-term options can start trading 60-second options. Even though 60 seconds is the most common time frame of binary options, this does not mean that traders have to be stuck with it. Time frames of two or five minutes may be more appropriate. Similarly, conversely, many binary brokers allow 45 seconds, 30 seconds, or even 15-second options to be traded.
60 second options – Choose the right timeframe
The time window is always important when trading Binary Options. Traders should not forget that 60-second trading is extremely short term. Outside of Binary Options, this time frame hardly plays a role, with the exception of scalping strategies. In any case, the analyses and forecasts of economic experts only ever contain estimates for the medium to long term. Analyses therefore only very rarely offer information that can be used for trading turbo options.
From my experience, it makes no sense to use a 1-hour timeframe and then trade 60-second trades. This is nonsense. You should use the 60-second timeframe or lower like 30 seconds.
It is just as important to choose a reasonable time frame for chart analysis. A price trend of the last three years will possibly show the most beautiful Bollinger bands the world has ever seen – for short-term trading, however, this is not a sufficient buy signal. Much shorter time frames should be considered here.
Using Binary Options Tools
Even the best Binary Brokers usually have a crucial weakness: The Binary Options platforms do not offer enough analysis tools and the representations are usually not too much adapted to the personal needs. Therefore, it is essential to use tools that allow for more extensive chart analysis.
On the Internet, especially in the context of Forex trading, there are many opportunities to obtain better analysis tools free of charge, which are also suitable for trading binary options. They are provided, for example, in the form of free demo accounts with FX brokers. MetaTrader is also a good alternative.
However, traders must ensure that the prices can actually be used. For example, if the charts in the analysis tool are lagging behind or use a different source than the Binary Broker, they are useless for trading with this broker.
Pay attention to the yield
Many beginners do not realize how important a good Binary Broker is for success in Binary Options trading. A few percent difference in the theme icon moneybag yield has a significant effect in the medium to long term. The maximum return is not always a decisive factor here. It is much more important than the return is good for the underlying and maturities that are traded most often.
Choose the right underlyings
As a rule, volatile stocks are best suited for short-term trading. Blue chips, the US dollar/euro currency pair or other stocks, which in most cases tend to be stable and are not necessarily characterized by strong fluctuations in value, are therefore much less suitable than volatile commodities and currencies, especially for Binary Options 60-second trading.
Ad hoc news and economic calendar
As a rule, an important market or company news has a strong impact on the market, at least in the short term. Although the principle applies to the stock exchange that forecasts of forthcoming events are already included in the price, the market almost always behaves differently in the short-term and reacts more strongly to the news. Of course, it is also possible that the news may be clearer and perhaps even surprise. Such information is excellent for trading 60-second options. Like hardly any other financial product, they make it possible to profitably exploit short-term trends.
However, speed is the key to success here. If you react too late to news, you can no longer make sufficient use of trends.
In 5 steps to the first 60-second trade
In order to be able to profitably exploit trends within a short period of time, it is essential to become thoroughly familiar with the trading of binary options. We have explained in advance what is important for 60-second trading. Below you will find the most important information about trading binary options; the points in the picture show you the 7 steps that lead to the first trade.
- Choose the asset you want to analyse
- Find a support/resistance area in the chart
- Wait for the test of the price area
- Confirm with indicators
- Choose the expiry time (60 seconds)
- Choose the investment amount
- Use the call (higher) option – enter the trade
Conclusion: 60 seconds Trading can bring fast profits
The 60-second trade offers profits in a very short time. However, high losses can also occur in a very short time if the trader gets into overtrading and wants to win by hook or crook. Self-reflection and fixed trading systems or strategies help to minimize gut decisions and to trade according to rigid rules.
Even if the advertising suggests that one only has to decide between rising or falling prices, nothing works in 60-second trading without a successful strategy. it can bring you fast profits or losses. So be careful because you need to pay a lot of attention to 60-second trades.
See my other articles about Binary Options:
- 15 Rules for Binay Options – Tips & Tricks
- 5 best Binary Options Broker 2020 – Review & Comparison
- Are Binary Options a gamble?
- Are Binary Options a scam?
- Are Binary Options Robots a Scam? – Honest review
- Best Binary Options App – Comparison & Review
- Binary Option Markets
- Binary Options – Call and Put
- Binary Options – Range Options – Boundary Options
- Binary Options – Touch Options
- Binary Options 60 seconds Trading Strategy & Tips
- Binary Options Bollinger Bands Strategy
- Binary Options commodities trading
- Binary Options demo account – Recommended For Beginners
- Binary Options Money Management Strategy
- Binary Options News Trading
- Binary Options regulation – Why is it important?
- Binary Options review – Critic and warning
- Binary Options RSI Strategy
- Binary Options trend following strategy
- Binary Options volatility strategy
- Binary Options vs. CFD Trading – Which one is better?
- Binary Options vs. classic options
- Binary Options vs. Forex Trading – Which one is better?
- Chart analysis for Binary Options
- Forex Trading with Binary Options
- Hedging Binary Options: Can You Hedge Against Losses?
- How risky are binary options?
- How to avoid Binary Options Scam Brokers
- How to trade Binary Options – Trading Tutorial
- How to Trade Stocks with Binary Options – Tutorial
- Is Binary Options Trading safe? – Consumer protection
- Learn to read Binary Options Candle Sticks
- Trade Binary Options with MetaTrader
- Trade Pivot Points with Binary Options
- Warning about Binary Options – A form of betting
- What are Binary Options?
- Why Binary Options Signals are a scam