60 Seconds Binary Options Strategy – A Detailed Review
Binary options trading has become increasingly popular over the last decade. One of the most exciting and fast-paced forms is 60 seconds binary options. As the name suggests, this strategy involves opening and closing trades within just 60 seconds.
This high-risk, high-reward approach offers traders the chance to make multiple trades in a short timeframe. A considered strategy is essential, however, to avoid falling into common pitfalls. We cover everything you need to know about 60 seconds binaries in this detailed review article.
An Introduction to 60 Seconds Binary Options
Binary options provide a simple trading proposition – will the price of an asset go up or down in a certain timeframe? Traders essentially bet on the outcome, earning a profit if they choose correctly. Payouts are fixed at the outset, so the maximum upside or downside is known prior to opening the trade.
60 seconds binary options take this concept and compress the expiration time down to just one minute. Traders have a minute to decide whether a given asset, such as a currency pair, stock or commodity will rise or fall in value. If the prediction is correct, the trade closes in-the-money and the trader wins a payout. An incorrect forecast means the trade closes out-of-the-money and the investment is lost.
This format obviously suits active traders seeking quick profits. It also suits those trading around news events or releases, where prices can fluctuate rapidly. The key advantage of 60 seconds options is the ability to place multiple trades in a short window. This ramps up profit potential.
Of course, the risks are also more significant. The compressed timeframe means decisions have to be made quickly, with little margin for error. Losses can also accumulate rapidly with poor strategy or money management. 60 seconds binary options are high-octane trading instruments.
Step-By-Step Guide to Trading 60 Seconds Binaries
Trading 60 seconds options successfully requires research, nerves of steel, and a trading plan. Here are the key steps:
- Choose a Broker – Firstly, you need access to 60 seconds binary options contracts. Check reviews and offerings to find a broker that provides what you need. Many offshore platforms now offer this format.
- Analyze the Market – Conduct research to spot short-term opportunities. Keep an eye on news events, technical levels and indicators. You need to move fast, so prepare ahead of time.
- Determine Strategy – Given the tight timeframe, you need an edge. This could involve trading breakouts, reversals or rebounds. Define entry and exit rules.
- Manage Risk – High-risk trading requires robust risk management. Limit your exposure to a small percentage of capital per trade. Use stop losses to contain downside.
- Execute Trades – Open positions as opportunities arise. Stick rigidly to your strategy and money management rules. One minute passes quickly so focus is key.
- Review Performance – Keep track of your ITM percentage and tweak your strategy if required. Don’t overtrade or deviate from the plan. Stay disciplined.
The best 60 seconds strategies combine indicators and rules that work for the trader. There is no one-size-fits-all approach. Finding a method that suits your trading style is key to long-term success.
Advantages of 60 Seconds Binary Options
The fast-paced nature of trading 60 seconds options offers some tangible advantages:
- High Volume – The compressed expiration allows you to execute more trades in a short window. This ramps up potential profits.
- Fast Profits – In-the-money trades close within 60 seconds. This provides quick access to your earnings. No waiting around.
- Simplicity – 60 seconds binaries are straightforward to understand. The fixed risk/reward profile helps novice traders.
- Low Barriers – Many brokers now offer low minimum trades of just $1. This allows you to try the format risk-free.
- Around the Clock – Major assets trade 24/7. You can trade 60 seconds options whenever markets are open across the globe.
The combination of regular payouts and constant opportunities provides the chance for savvy traders to rack up consistent profits. The higher trade frequency does mean more trading costs, however.
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The Downsides and Risks
Whilst the prospect of regular, fast profits is alluring, 60 seconds trading does come with some notable downsides:
- High Risk – The speed of trading means unexpected volatility can rapidly wipe out balances. Significant losses can accumulate in minutes.
- Stress – With everything compressed, 60 seconds trading can be an intense, high-pressure environment. This may affect decision making.
- Overtrading – The ease of trading can lead some to overtrade. More trades does not always equal more profit though.
- Unsuitable for Beginners – The fast windows means novice traders should gain experience before attempting 60 seconds options.
- Requires Strong Strategy – With little margin for error, you need a robust, proven strategy. This takes time, practice and discipline to master.
The risks are clear, and this style of trading is certainly not suitable for everyone. Maintaining perspective and managing risk is absolutely vital for long-term success and survival.
Top Tips for Trading 60 Seconds Strategies
Based on the pros and cons, here are some useful pointers to applying 60 seconds binary options strategies:
- Specialize – Focus your trading on specific assets or markets. This allows you to really hone your skills.
- Start Small – Get used to the speed by risking nominal amounts per trade initially. Slowly increase stakes as profits accumulate.
- Learn to Read the Tape – Mastering the ability to interpret short-term price action is a key skill.
- Avoid Overtrading – More trades does not guarantee more profit. Stick to high-probability setups.
- Have a Cut-off Point – Walk away once losses hit a certain level. Don’t try to recoup losses when emotions are running high.
- Review Your Strategy – If profits start shrinking, take a step back and look to refine your approach. Stay flexible.
- Stay Grounded – The speed can be intoxicating. Maintain perspective and keep your emotions in check.
The rewards can be high but it’s important to keep in mind that short expiration trading is not suited to all trader personalities.
60 Seconds Binary Options Strategy Conclusion
- 60 seconds binary options allow traders to profit from short-term price movements in under a minute. This fast-paced trading strategy appeals to traders who want instant gratification and quick profits.
- The 60 seconds strategy relies on technical analysis and indicators like Bollinger Bands, RSI, and moving averages to identify trading opportunities. Traders look for price breaks above or below indicator bands and overbought/oversold levels.
- While the potential for profits is high, the 60 seconds strategy is considered very risky as the price can move against you quickly. Strict risk management, discipline, and emotional control are required.
- The strategy may not be suitable for beginners as it requires fast analysis and decision making. Extensive practice on a demo account is recommended before trading with real money.
- Overall, the 60 seconds binary options strategy offers traders the chance for multiple profitable trades in a short time frame. However, the high risks mean traders should use proper strategies, manage risk, and not overtrade this fast-paced market.