As you can probably tell by the name, 60 seconds binary options trades are a fast and furious type of trade that you can do in, you guessed it, one minute. This type of binary option trade is by far the quickest online, and that includes other trading platforms like forex trading and spread betting. With the latter, the shortest timeframe you can work with is typically five minutes. Spread betting and other platforms might be fast, but they are generally not as quick, nor do they deliver the same exhilarating feeling, of trading binary options in 60 seconds.Whether you are just getting started with binary 60 second trading or are already an experienced investor, it is a great opportunity to make healthy returns in a short amount of time. Remember, however, that a short timeframe means fast decision making, which inevitably increases the risk involved. At the same time, once you understand binary option trading and what it entails, you will develop the confidence to dive into 60-second trades without even thinking about it. Successful traders will often bring in returns of 75-85% from 60 sec binary options. When you read the articles and blogs about traders who work for an hour a day and make a mint, but do not share their secrets, it is likely that 60 second trading features are included somewhere in what they do.How is it possible to make such lucrative returns from 60-second options? Here are the essential considerations you need to make, and things you should have in place, which will give you every opportunity to succeed, whatever your level of experience may be.
Why Trade 60 Second Binary Options?
While experienced investors will look at the potential for high returns with short-term binary option trades – usually because they have the capital to bear the odd reasonably heavy loss – those new to 60-second option trading, and even to binary option platforms in general, might look at the potential risk attached and decide it is not for them. Critics of short-term trading in general, not just 60 second binary option trades, have long-called it a type of gambling. We wholeheartedly disagree with this analysis. Gambling is when you put money at risk without having any idea of the outcome, like staking capital on the flip of a coin, the turn of a card, or where the red ball will settle in a roulette wheel.When you decide to undertake short-term trading, you will use all of the information available, including charts, historical trend data, and advice from a broker or respected trader, in order to make an educated decision as to where you will place your investment. Making decisions based on evidence is not gambling; it is smart, which is why individuals do it every day of their lives, and why it is the foundation of the work of organisations like police forces around the world.If the data is saying you could make the same money in 60 seconds that you could in a month with another investment, what smart investor or trader would turn this down? In reality, short term trading is no different to a long-term investment in a global stock, a foreign currency, or a commodity like gold or iron ore. All you are doing is making an investment decision based on a smaller range of performance: 60 seconds instead of 60 weeks, for example.
Pros and Cons of 60 Second Trading
In all areas of life it is common for us to balance the pros and cons of something before making a decision. One overwhelmingly positive aspect of 60-second binary option trading is that you are 100% in control of the cons. The cons you will learn about are only downsides if you let them take over you. You are the one in charge of your binary trading account, and you are the one who will ultimately decide whether the cons happen.
- Opportunities to Make a Quick ProfitThis does not mean you should see short term trading as a glorified ‘get rich quick’ scheme; there are enough of those on the internet already without Bank of Trade or anyone else adding more. Yet, if trading binary options in 60 seconds is your primary revenue generator, it is a great way to either shorten your working day, or make as much money as you wish.
- More Regular Trading OpportunitiesThere is nothing worse for traditional, longer-term investors than when they see a great opportunity come up while their capital is tied up elsewhere. 60 second binary trading means that does not happen. You know at the end of the minute whether you have a return, and so can quickly move onto the next one.
- Potential to Capitalise on Market VolatilityInvestors and traders often dislike market volatility, but smart short-term traders can use it to their advantage. If there is potential for huge jumps or drops, then higher returns can be made by taking a chance that something significant might happen. Market volatility can often make the riskeward balance seem skewed, so remember to maintain clear thinking while trading such markets.
What are the cons you need to avoid and control to ensure short term trading remains in your favour?
- Missing TradesThe fast moving nature of short term binary trading means it is possible to miss opportunities. This will happen less the more experienced that you get, especially as you begin to identify potential trades far in advance.
- Your Own EmotionsEnjoying average returns of 75%, for example, does not mean every trade will bring in that number. Take each trade as it comes; it is easy to think that you lost in a minute, so you can gain it back in a minute, but doing so will probably only lead to higher losses. This works in terms of success, too. Just because you had a great day, or your last 10 trades have been successful, it does not mean you should start investing higher amounts or adapting a careless mind-set.
Getting Started with 60 Sec Binary Options
Once you are clear in your own mind that 60 second binary trading is something you wish to explore, whether due to positive experiences with regular binary option trading or because this is simply your entry point to the market, you are in a great position to get started.The first thing to do is inform yourself as much as possible and fill any remaining holes that may remain in your knowledge about short term trading, ideally using articles such as this one and others here at Bank of Trade. You can then move forward and start trading and enjoying potentially lucrative returns.There are many 60 seconds binary options brokers available online. We recommend that you choose one where you feel comfortable with the trading platform and feel that you can use confidently. At Bank of Trade, we have an intuitive and simple interface that is useful both for new traders as well as for those who are vastly experienced with binary options and other forms of online trading. We also provide great advice around where the best trading opportunities are, meaning you have the best possible chance of seeing success from the start of your trading.Although a 60-second binary options broker will often provide charts and various other data for you to digest and use to your advantage, it is often beneficial for traders of all experience levels to have their own software platform. This means traders can look at trends in their own time without needing to log in to their binary trading account, and that they can focus solely on trading when online. The best analysis software will allow you to break down trades by the minute for short term trading, but also enable you to see the bigger picture.
How to Spot Trends
While there are several technical indicators an investor or trader can use to spot trends using financial charts, either online or in a newspaper or magazine, for short-term trades trendlines are the only real tool at your disposal. When you are analysing the data within such a small timescale, looking at moving averages and support and resistance in any sort of detail is almost pointless.
If you are using a good online broker or your own financial analysis software, trendlines should be overlaid onto the charts you are looking at anyway. If this feature is not included, the next best thing to have is a tool incorporated so you can draw trendlines yourself. The last thing you want to be doing is exporting a print screen to Photoshop or sitting in front of your laptop with a ruler!You are looking for ‘tops’ and ‘bottoms’ when drawing a trendline. Look at the example image above; if you have three tops you have an upward trend, and three downs means a downward trend. Although you cannot predict the long-term future – why would you want to anyway with a 60-second trade – you can get an idea if a market starts to decline or grow before trading. This is never going to be an exact science with short-term trades, but it can help to clarify the level of risk and chance of success with any 60-second trade.
Being able to create your own trendlines and understand how a potential trade is performing is only one part of achieving success. You then have to take this understanding and develop it further, so you can identify up and down trends, or at least anticipate them, prior to them happening.Understanding trend patterns – you might see these described as wave patterns or Elliot Wave trends in books and elsewhere online – is easy once you have identified the peaks and troughs of trades. You know that three tops or three bottoms indicates a trend change, so you can start to look for wave patterns when there is one or two tops or bottoms. If you see continuous movement between tops and bottoms, that particular trade is moving sideways and is unlikely to offer you any value from a binary trading perspective. To gain an idea of what could occur after the sideways trend, look at previous performance. Sideways movement is often a stabilisation following a dramatic leap or fall, and will often be followed by movement in the same direction as before, but at a reduced rate. If there has been long-term sideways movement, then the dramatic leap or fall is likely to follow this, so you should be ready to capitalise as soon as this happens.The importance of being able to spot subtle changes in trend patterns is exaggerated when it comes to 60 second trading. In terms of wider trading, you can often dismiss a small downward trend if you have evidence to show it will likely recovery by the end of the day or a longer trading period. With 60 second binary trading, even a small bottom could cost you your money, which is why it is so crucial you are switched on and stay away from potential losses as much as possible, particularly when the higher risk is clear.
Call Trades or Put Trades?
There is no difference in the meaning of ‘call’ and ‘put’ in 60 second trading compared with regular binary options trades. If this is your first experience of binary options, these can be explained as follows:
- A ‘call trade’ is placed when you believe the market will grow, in this case over the next 60 seconds.
- A ‘put trade’ is placed when you believe the opposite will happen, and shrink over the next minute.
Although we are not talking about gambling when we refer to binary option trading, the best way to understand this is to liken it to sports betting, when you can ‘back’ or ‘lay’ a certain outcome.When you know how to create your own trendlines, if you do not get them from your 60 second binary options broker or from your analysis platform, and you know how to spot the trends and understand patterns and waves, you can confidently place call and put trades as often as you wish.The biggest returns can be made from short term trading when you become adept at spotting when the price of something is hitting a peak or a trough. Trading as the market swings is how to enjoy the most lucrative returns, and when you are into a true upward or downward trend, you should be cashing in. Avoid placing too many call or put trades on one thing, however, as you can easily be caught and then miss out when the market moves in the opposite direction once again.
Strategies for 60 Seconds Binary Options Trading
All of the areas of 60 second trading covered so far provides you with an excellent toolkit to get started with short term trading here at Bank of Trade. What is left is to define a strategy that you can use throughout your short term trading.The safest strategy points to our earlier analysis of sideways trends. If you are looking for opportunities where the riskeward balance is in your favour, then look out for markets that have been moving consistently sideways for a while. When they start to move in either direction upwards or downwards following an extended period of stagnation, they become known as ‘breakouts,’ and this is when you need to be trading them. As soon as an up or a down trend is established, they will move dramatically. Depending on what it is and the interest level, you could even cash in on call trades before doing the same on put trades should it stabilise back to its original level.An often-cited strategy for short term trading is to hedge your capital and place a large number of call or put trades at once. If you are recommended this as a new binary trader, you should avoid it, as you could lose money quickly making snap decisions, especially if you are yet to grasp trend spotting fully within the context of 60-second trades. There is always the chance when you do this that all your trades could go wrong, which would likely leave you with little capital for future binary trading.Overall, the best strategy is to know what you are doing before you get started, meaning you will make smarter, more educated decisions and reduce the risk element as far as possible.
Why Bank of Trade Offers 60 Second Trades
There are several reasons why we offer 60 second trading options at Bank of Trade. Firstly, we understand the differing needs of investors and traders. While some are happy to place binary option trades or use a spread betting platform and leave it running all day, others might prefer to see how their trade has performed. If an individual only has a few minutes spare each day, then a 60 second trade enables them to follow a passion or make extra money without wasting nervous energy throughout the day thinking about what they will find when they check their laptop or smartphone at 6pm.As well as meeting a need, some traders simply prefer short term trading. This is particularly true of those who you hear about who ‘work on the beach.’ Although they probably work harder than they would have you believe it is true that, with experience, lucrative sums of money can be made from short-term binary options trading, and working for an hour or two a day can become reality for the more successful.