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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.
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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.
Binary Options Trading Strategy – Best 60-Seconds Strategies
Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.
The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.
Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.
When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.
And that, my friends, is the real beauty of binary options.
What are Binary Options?
Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?
Now, let’s start by understanding how binary options work.
Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).
So, the first thing you need to decide upon is to select the asset to trade.
Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.
The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.
Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.
Trading binary options require you to correctly forecast two things:
- Whether the market will rise or fall.
- Your forecast needs to be accurate during a certain time frame – called the expiration time.
If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.
Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.
Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.
We have made a nice infographic that highlights the four steps on how to master binary options trading.
Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.
Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.
In this demonstration, we’re going to look at the buying Calls.
The Best Binary Options Strategy
Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.
The only tool you need to trade binary options successfully is the RSI indicator.
Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.
Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.
*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.
By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:
Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)
The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.
We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.
When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.
Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.
Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below
Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.
In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.
Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.
We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.
Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.
When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.
What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.
If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.
Now it’s time to highlight how to find the right entry point for the binary options trading strategy.
Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low
The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.
It’s that simple!
After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.
Step #5: You collect your profits if the next candle closes higher than your trigger candle
If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.
For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.
If you want to buy Put binary options, use the same binary options guide, but in reverse.
Conclusion – Binary Options Trading Strategy
Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.
We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.
The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.
Thank you for reading!
Also, please give this strategy a 5 star if you enjoyed it!
Don’t forget to read our guide on regular options trading for beginners here.
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Does the Robot Do 60 Second Trades?
By Srdan Sore – April 24, 2020 1:48 pm
In binary options trading, there are several trading options with different expiry times. As far as the Binary Options Robot is concerned, a 60-second trading option is part of services offered to its traders. In this article, we will provide you information about 60-second trades and why this auto trader uses this short-term option in its trading process.
Traders can choose which expiry times they like to trade
Binary options can offer many types of expiry times and they could vary from a shorter period to a longer one. The shortest possible period for binary options trading is 60 seconds, and then theoretically, it can grow only as long period as trader wants to trade. The longest possible trading period can be a year, but there are rarely many binary traders that would use such a long trading period. The longest expiry period a trader can trade in Binary Options Robot is one day.
60-second trades are very difficult to predict
The Binary Options Robot uses a short-term period for its expiry times, such as 60 seconds, because those trades are considered as most profitable trades. A 60-second binary trade is very hard to analyze, and it is very difficult for trading algorithms to predict whether the opportunities of the binary market are going to rise or fall. This is why most traders who use auto trading Robot are placing trades on little bit longer period, at least longer than 60 seconds.
Why Binary Options Robot offers 60-second trades?
The main goal is the profitability of traders, so we consider that 60-second binary trading can drastically increase trading profits. Trading algorithms that create binary signals for Binary Options Robot are reliable and their success lies in their analysis of the technical, fundamental, trading, and statistical binary market indicators. The other algos that calculate 60-second trading are pretty insane, because they are just giving the random incorrect predictions of market fluctuation, without any safe financial judgment. In addition, to prevent traders from losing the money from their accounts, we are trying to explain that there is no adequate method which could predict such a short-term expiry time.
Robot collaborates with proven trading algorithms with significant success rate
In addition, to provide most accurate signal predictions, the shortest period they can successfully evaluate is a 15 minute expiry time. Let’s point out that trading algorithms that generate binary signals for the Binary Options Robot have significantly higher success rates. If you still trade without the auto robot, we recommend you to use the Binary Options Robot to maximize your success rates and spend your time on something else, without worrying about trades. Your auto trading Robot is designed to do all the analytical and technical work, while you can sit and relax, letting the software make you a profit. This amazing auto trading software offers a
Your auto trading Robot is designed to do all the analytical and technical work, while you can sit and relax, letting the software make you a profit. This amazing auto trading software offers a VIP account membership, which is free at the moment. You can get a VIP account by depositing with a reliable broker through Robot platform. For any questions feel free to contact Binary Options Robot friendly customer support team. VIP account provides features with a few great parameters that can additionally maximize your profits!
60 Second Binary Options
60-second binary options are for traders that want to be very active in the market and see results fast. Since these options expire in one minute you can potentially do hundreds of trades a day.
Like traditional binary options, if you believe an asset will be higher than the current price 60 seconds from now you’ll buy a call option. If believe an asset will be lower than the current price 60 seconds from now you’ll buy a put option. A correct assessment will land you a pre-determined payout, usually between 60 and 70% on the money you traded (plus you get the money you placed on your trade back). Choose wrong, and you lose amount you placed on the trade.
The 60 seconds starts the second you place the trade. So if you place a trade at 9:45:15 AM, your binary option expires at 9:46:15 AM, 60 seconds later.
Figure 1. 60 Second Binary Options
Figure 1 shows a screenshot of some 60 second binary options. The payout is 67% in this case, and the Target Price is the current price. You’d click “High” or “Low” (not shown) which is equivalent to selecting Call or Put if you think the rate will be above the Target Price in 60 seconds. The 60 seconds begins as soon as you lock in your trade. Often the broker will also provide some other short-term expiries as well. In this case, if you click the dropdown menu you can also select 60 Seconds, 120 Seconds or 300 Seconds.
Trade 60 Second Binary Options With These Brokers
The main advantage is that you can essentially trade as much as you want. Theoretically you could make a trade every few seconds, or basically as fast as you can click your mouse. This allows you take advantage of any short-term opportunities you may see, without needing to worry about finding an expiry time that suits your timeframe. Simply click to buy a put or call and wait 60 seconds. Trade multiple assets and you could have multiple trades on at one time, all expiring within a very short timeframe.
From a trading perspective 60 second binary options allow you capitalize on strong market moves effectively. If the EUR/USD for example is having a very strong morning, while you still need to time your entry, chances are the EUR/USD is still going to be strong 60 seconds from now. Therefore, these options let you jump into the flow of the market, and get out of the trade quickly before a major reversal occurs. That said, you’ll still need skill in order to determine when strength may be waning, warning you it is time to back off.
This allows you to seize every possible opportunity, and potentially rack up some big daily gains.
While you can trade a lot in a day with 60 second binary options and potentially make a lot of money, you could also lose a lot. “Over-trading” is common among new traders who want to try to catch every market move, but these aren’t likely high probability trades to win. Good set-ups often take time to develop, and therefore by using 60 second binary options you may be distracted by mediocre or poor trade set-ups, missing the good ones.
The payouts on 60 second binary options is also generally lower than other more traditional types of binary options, in the 60% area. This means you will need to have a very high win rate when trading. If you lose 100% of the capital you trade on losers, and only make 67% (for example) on your winners, you need to win 6 out of 10 trades to breakeven (tiny profit in this case).
60 second binary options provide a load of potential, and provide a way to seize short-term opportunities. Ideally, 60 second binary options should be used for just that–seizing high probability short-term opportunities. There is a big risk of over-trading these types of binary options since there is the possibility of instant gratification, or if you lose the potential for “revenge trading” where you try to recoup losses. This usually doesn’t end well. Lower payouts also signal that these options should be used sparingly. Over the long-run you need to win about 6 out of 10 trades to breakeven. To make a decent profit your win rate will need to be higher. That is difficult if you over-trade or trade mediocre set-ups. As with any trade, trade quality set-ups over quantity.
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