Binary Options Trading Strategy for 60 Seconds: What is it?
The 60 second trading strategy involves making short-term trades using binary options. In this case, the option expiration time is only 1 minute. Traders choose this approach to take advantage of the small price fluctuations that can occur very quickly. But with high profitability comes high risk, so you need to be very careful and react quickly to changes in the market.
What Tools Will You Need?
Choose a platform with fast trade execution speed and robust security. Reaction time is critical in this strategy. Here it is important to choose a reliable binary options broker, which is well reviewed on the Internet by traders, for example, such a reliable broker – Pocket Option – https://revieweek.com/review/pocketoption/.
- MACD (Moving Average Convergence Divergence) will help to determine the presence of a trend and its strength.
- RSI (Relative Strength Index) will help to understand whether the asset is overbought or oversold.
- Stochastic oscillator indicates when the trend is changing.
- Economic Calendar: allows the trader to keep abreast of all important economic events that can greatly affect asset prices.
How to Buy Binary Option with 60 Seconds Strategy?
- Go to the broker’s website, for example, Pocket Option’s website.
- Go to the trading terminal and the chart. Add indicators to it.
- First, pay attention to the MACD. If the MACD line crosses the signal line from bottom to top, it can be a sign of an uptrend.
- The next step is to analyze the support and resistance levels on the chart. If the price of an asset bounces off a support level, this is another positive buy signal.
- If all indicators confirm an uptrend, go to the platform and open a trade on the upside with an expiration of 60 seconds.
How to Sell Binary Option with 60 Seconds Strategy?
- We look at the MACD, RSI and stochastic oscillator. If they all point to a downtrend, for example, MACD crosses the signal line from top to bottom, this is a signal to act.
- If the price of an asset bounces off a resistance level and moves downward, this confirms your hypothesis of a downtrend.
- If all factors converge, go to the trading platform and open a down trade with an expiration of 60 seconds.
Binary Options Trading Strategy for 60 Seconds: What is Important to Know?
This strategy requires not only a good understanding of the market, but also nerves of steel. High momentum and short time frames make this strategy one of the riskiest, but also potentially profitable. Therefore, before you start trading, it is definitely recommended to test your strategy on a demo account. This will allow you to understand how effective the strategy is without risking real funds.
In addition, do not forget about the rule of risk management: never risk an amount whose loss is critical to your financial well-being. And even if a 60-second strategy seems simple to you, it requires high concentration, quick reactions and constant monitoring of the market. Therefore, if you are a beginner, start with longer-term strategies and move on to this strategy only after gaining the necessary experience.
It is also important to constantly improve your skills, learn new indicators, follow the news and analyze your successes and failures. Only constant analysis and adaptation will allow you to stay profitable in the long run.
Who is this Strategy Suitable for?
This 60 second binary options trading strategy is not suitable for everyone and has its own requirements for the trader. Here is who can consider this option:
- Since the strategy is very fast, it requires a good understanding of the market and quick reactions. If you already have experience trading on longer time frames, this strategy could be your next step.
- Because of the short time frames and high volatility, the risk of losing money increases significantly. If you are ready for such risks, this strategy might be for you.
- You will need to make split-second decisions, and this requires calmness and responsiveness.
- This strategy requires constant monitoring of the market, so if you have the time to watch the market and react instantly, this strategy may be suitable.
- Sometimes binary options allow you to start trading with a relatively small investment. However, keep in mind that high risk comes with the possibility of quick losses.
- If you have a good understanding of indicators and know how to use them, this strategy will give you room for experimentation.
- This strategy is not recommended for absolute beginners because of the high level of risk and difficulty in making quick decisions.