When trading binary options, a single minute is all that stands between you and a substantial amount of profit. The creation of 60 Second trades was a game-changer for the binaries industry, as this instrument provides the absolute fastest way for a trader to earn money from market movements. Time alone is not the only factor to consider however, as analysis and money management will also be required when making use of fast trades.
Let’s start with fund management. Many brokers allow traders to commit amounts as small as $5 when using short-term trades. This is quite a benefit to traders, as fast trading can equal fast losses. For the new trader, smaller investment amounts can provide protection, as no one wants to see their account funds drained from only a few losses. The return rates offered on short-term positions tend to be just as high as with any other type of instrument, which means that profit totals can mount quickly when you’re trading well.
Contrary to popular belief, analysis is required if you’re planning on generating large profits from 60 Second trades. With that being said, it may be possible to carry out less analysis during times when a price trend is taking place. A single minute does not allow much time for the sentiment of the market to change, so when an asset price is moving in a single direction, it may be possible to fire off several profitable trades. While it does in some ways seem easier to win positions with shorter expiry times, keep in mind that even the smallest price movement can be the difference between a profit or a loss.
At a base level, short-expiry positions are the same as Put/Call positions, requiring only that you forecast whether the price of your selected asset will be higher or lower than the strike price when the position closes. This type of trade remains the foundation of binary options trading, despite the fact that numerous new instruments have been introduced by brokers over the past few years. The only change is the expiry time, which while we are referring to one minute positions here, can actually be less than that. Some brokers are now offering positions that remain open a mere 15 or 30 seconds.
There are many different strategies that can be used to successfully profit from short-term expiration times. Overall, the most effective are those which are linked to trend trading. The truth of the matter is that general price movement in a single direction is the best possible type of price action for trading binaries profitably. This is particularly true when using reduced expiry times that allow for a higher trade volume to be completed. When a strong price trend is in place, multiple in the money finishes are certainly not out of the question.
Fast trading provides a real risk of fast losses. This makes it very important to know when to trade and when to take a break. It also makes it important to be able to control the strong emotions that come along with trading. When decisions need to be made quickly, problems can certainly arise when emotion is the dominating decision-making factor. Trading is exciting, there is no denying that fact, but excitement should not take the place of common sense, especially when trading quickly.
Some feel that 60 Second trades are too risky, while others are more than happy to see nice profits added to their account a mere minute after a position has opened. The best plan is to use this instrument when it is appropriate to do so – which would mean entering into positions when trends are taking place. Do this and the associated risks immediately decrease. As with all types of binary options instruments, solid planning is the key to profiting from short-term trades.
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