In terms of strategy, 60 Seconds options take a very special place. While all binary options are short term oriented compared to regular trading, 60 Seconds options are even more extreme.
Due to their incredibly short expiration time of only 60 seconds, they need a special 60 seconds binary options strategy. In this guide, we will explain everything you need to know to create your own successful 60 seconds binary options strategy.
With the answers to these questions, you know everything you need to understand the nuances of trading 60 seconds binary options and to make money with the perfect 60 seconds binary options strategy for you. A strategy for 60 Seconds options faces a few unique challenges. Most of these challenges relate to the short time frames that you have to use to trade 60 seconds options. While some aspects of 60 seconds binary options strategies can be adapted to other strategies, some of them are unique to 60 Seconds options.
In general, every trader will benefit from thinking through these strategies at least once because it will provide him with a greater insight to how the market works. On short time frames, market movements are especially erratic.
Fundamental influences such as a company doing well, for example, are almost meaningless. Even if you knew how an asset would perform this day, you could not predict what the stock will do in the next minute. Short time frames are dominated by almost random actions. Luckily, you can make valid predictions for 60 seconds options without understanding why the market is rising or falling. All you have to know that the market is rising or falling.
This is what technical analysis is for. Technical analysis focuses on the only thing you know about short time frames: By recognizing certain price movements and understanding what they usually lead to, technical analysis can help you to make valid predictions about what people will do even if you know nothing about why they will do it. To understand the nature of technical analysis, think of a person walking into a convenience store.
Without knowing anything about the person, you could predict that the person is likely walking into the store to buy something. Of course, this prediction would not be right all the time, some people might walk into the store to return something or to work there or to go to the bathroom, but if you made the prediction at a Walmart, you would be right at least 95 percent of the time. Technical analysis adapts this approach to trading. Some patterns of price movements are highly likely to lead to rising prices; others are highly likely to lead to falling prices.
By recognizing these patterns and understanding the outcomes that they are likely to lead to, you can find profitable trading opportunities for 60 seconds options. To make sense of the erratic price movements in these short time frames, technical analysis uses instruments such as trends, and candlesticks are invaluable instruments. To create your own 60 Seconds binary options strategy, you have a few options. First of all, you can look for trends in short time frames. Trends are zig-zag movements that take the market to new highs and lows.
Trends on short time frames are short lived, but they allow you to win a 60 seconds options when you recognize them. Candlesticks are a special way of displaying market movements that provides more information than the classic line charts many traders new from TV. Candlesticks display the opening price and the closing price of each trading period as two lines connected by a thick line and the high and the low of each period as a thinner wick to each end.
With this simple way of displaying market movements, you know the entire price range of a period and never miss any information. Because candlestick charts cram so much information into every candlestick, a single candlestick is often enough to allow for sophisticated predictions about what will happen next. By learning a few simple candlestick formations and the predictions for which they allow, you can easily find trading opportunities that are ideal for 60 seconds options.
In this case, make sure each candlestick represents a time frame of at least 15 seconds, or the movements will be too random. Finally, you can use technical indicators like the Moving Average to generate signals. In any case, the experience is an especially important ingredient to making good decisions in such a fast paced environment.
Compared to strategies for other binary options types, 60 seconds binary options strategies offer a number of advantages.
Instead of only a few seconds, all other binary options types use expiries that range from 15 minutes to a few hours or, in the case of long-term options, even a few months. In these bigger time frames, market movements become less erratic and more predictable. As a 60 Seconds trader, you, therefore, have to work with less secure predictions than all other traders. You can make more money than with any other strategy Compared to other strategies, a 60 seconds binary options strategy generates have an abundance of trading opportunities.
Instead of generating only a few signals every day, a 60 Seconds binary options strategy can generate tradable signals every few minutes. Although you have to accept a higher percentage of losing trades, if you still manage to make a profit, a 60 Seconds binary options strategy can help you make a lot of money in a short time. A 60 seconds binary options strategy offers an unmatched potential for earnings.
You can easily find five to ten trading opportunities per hour, and if you invest a few hours per day, you can win a far higher number of trades than with any other binary options strategy. You have to invest less time Another advantage of a 60 seconds strategy is that it allows you to cram all your trading in a smaller window of time.
If you want to place 5 trades a day, a strategy based on other binary options types would require you to trade for at least a few hours every day. On such long time frames, it simply takes longer for the market to develop trading opportunities.
On the shorter time frames of 60 seconds options, you will find a new trading opportunity every few minutes.
When you are looking for a trend that can last for the next 60 seconds, you will find significantly more opportunities than if a trend has to last for the next four hours. Traders that are limited on time will find that a 60 seconds binary options strategy is much easier to execute for them than any other time of strategy.
Even if you can only spare five minutes here or there, with 60 seconds options, you can find quality investment opportunities. When you are stuck in traffic, waiting in line, or taking your girlfriend shopping, 60 seconds options are the only options type that allows you to fit in a quick trade here or there. You learn more quickly With every trade that you make, you learn something.
You learn how the market works, which tools help you to make money, and which style of trading is right for you. These lessons are crucially important, especially for newcomers. With 60 seconds options, you get more lessons in a shorter period of time than with any other binary options type.
With a 60 seconds binary options strategy, you make more trades a day than with any other strategy, which provides you with a faster learning curve than any other type of strategy. If you are new to binary options or trading in general, it can make great sense to start out with a 60 seconds binary options strategy. Especially if you are starting with a demo account, you can use this risk-free environment to make as many mistakes as you can as quickly as possible and get as many lessons as possible in a short period of time.
With these advantages, a 60 seconds binary options strategy is something every trader should try at least once in their career. There is an almost limitless amount of possible strategies for 60 seconds options. To help you get a successful start, we have gathered the most effective strategies that even newcomers can master quickly.
These strategies will provide you with a good starting point, and later, you can adapt them to your preferences. On short time frames, complicated price formations are rare. The market is simply too erratic and nervous to form trends. Luckily, there is a great tool that allows you to find profitable trading opportunities nonetheless. This tool is candlestick formations. Candlestick formations are an alternative way of displaying price movements.
Compared to the classic line charts most traders know from TV, candlesticks communicate more information and allow traders to make better decisions. The trouble with line charts is that they are unable to display every single price movement.
When you look at a chart that displays the price movements of an entire day, the charts has to exclude most price movements and create its charts based on only 15 to 20 prices for the entire day — there is simply no more room. As a result, you miss most of the information. What seems like a straight without much movement up or down could be an optical illusion where prices moved far from the periods opening price but moved back before the next period.
This information is crucial because it tells you whether the market is volatile and nervous or calm with low volatility. Candlesticks provide you with more information by displaying the opening price, the closing price, the high, and the low of each period. Every single price is included in this way of displaying market movements, which is why you can even look at a chart that displays market movements of an entire year and see every single price this asset had over this time.
Candlesticks make predicting the market so easy that one candlestick is often enough to allow for a prediction. When you have an especially long candlestick, for example, where the market rose or fell significantly and closed near the high or the low of the period, you know that the market was in a strong movement.
This movement is likely to continue with the next candlestick, and a 60 second option is the perfect way to make money with this prediction. Significant candlesticks will form on any time frame. Learn a few of the most frequent candlestick formations, and you will be able to make sophisticated predictions for 60 seconds options. Oscillators are one of the most helpful tools to predict what the market will do on short time frames.
As we pointed out earlier, the market rarely moves in long lasting trends on short time frames. Consequently, you have to decide whether the current movement has still some energy left to continue and whether you can still invest in the current movement or should wait for the market to turn around and move in the opposite direction. Oscillators are the ideal tool to understand whether a movement still has some momentum to continue.
Oscillators analyze past market movements and put them in relation to each other. The relative strength index RSI , for example, compares past periods with rising prices to past periods with falling prices and returns a value between and 0.
Based on these indications, you can easily create a trading strategy. Wait until the RSI reaches an overbought or oversold area and moves back into the main regular range between 30 and 70, then invest in the direction of the drop back. This strategy is so easy because you can ignore all market movements. You only need to understand the RSI and how to interpret the value it generates.
Even complete newcomers can execute such a strategy from the start. To make money with binary options, you have to know whether the market is currently rising or falling. The easiest way of understanding whether the market is currently rising or falling is using moving averages. Moving averages calculate the average market price over the last periods. The logic behind moving averages is simple:.
The one thing you have to understand is that the time of your moving average determines your relationship of risk and reward.More...