The 60-second binary options type has become very popular since its introduction a couple of years ago. Here are a few binary options strategies you can use to trade it.
60 seconds binary options are generally for those traders who want to see fast results and can stay active in the market. It is a profit-making and popular short-term strategy.
Just like another way of making an amount, binary trading is not smooth as it looks. One must invest time to learn and implement a strong trading strategy. Knowing how to trade options increases the performance of a trader.
In this article, we will talk a bit about what 60 seconds binary options are and some of the best 60 seconds binary options strategies that can be implemented. We will also talk about how to trade 60 seconds binary options successfully.
If you are just starting and want to know the basics or experiment with trading, feel free to check out and sign-up on Quotex and trade without losing any money.
What you will read in this Post
(Risk warning: Your capital can be at risk)
60-Second Binary Options strategies:
Having multiple trading strategies makes sure that decisions are not made emotionally.
Instead, a strategy refers to having a specific calculated course of action that reaps benefits. The desire and fear of losing all of these are common emotions that arise when investing your hard-earned money and having a strategy. Instead, it generates confidence and the ability to take a calculated risk.
When trading binary options, it is even more important to use a strategy. While the software is easy to use, you can still lose a lot of money if you make poor decisions or choose the wrong trades.
Check out one of my 60 second trading session with strategy:
1. Support and resistance strategy
The price of assets possesses a tendency to advance in a sequence of waves with each one possessing a top and a bottom. These constraints are assessed to be major reversal levels which can be readily identified by key support and resistance levels. A favorite 60 seconds strategy is to identify those times when the price clearly rebounds against these resistance and support levels. New binary options should then be opened in the opposite direction to that in which the price was progressing before the rebound.
For instance, the next GBP/USD 60 seconds trading chart presents good examples of when to execute both CALL and PUT binary options. Essentially, whenever the price rebounds against resistance, you should activate a PUT option. Similarly, if the price bounces higher after striking support, then you should open a CALL binary option.
Your first step in instigating such a binary options strategy is to detect a currency pair that has been range-trading for some extensive time. You must then identify the resistance and support levels by either using your broker’s information or simply connecting the highest points for resistances and the lowest values for supports, as shown on the chart above.
Once you observe price testing one of these levels, then wait until the present candlestick confirms a true bounce by cleanly closing below resistance or above support. This action will provide you with some protection against false signals. For example, if a successful confirmation is attained, then open a new PUT binary option using the GBP/USD as its underlying asset with a 1-minute expiry time if the price bounds against resistance, as displayed on the chart above.
By wagering $100 with a payout of 75%, you would have collected $75 for both the PUT options shown above. In fact, your initial wager of $100 would have exponentially increased to $937 for the four trades displayed above within 5 hours if you had reinvested your returns in each case.
2. Follow the trend strategy
Another 60 seconds strategy that has gained in popularity recently is based on tracking trends. This is because such strategies allow you to exploit the advantage of trading with the trend and, as such, comply with the famous maxim which states that the ‘trend is your friend’. The basic idea is to trail a trend and execute a ‘CALL’ binary option if the price ricochets higher from the lower trendline when the underlying security is climbing within a well-established bullish passage. In contrast, you should activate PUT binary options whenever the price rebounds downwards after hitting the upper trendline in a well-defined bearish channel.
For example, the above 1-minute trading chart for the USDCHF currency pair clearly displays a strong bearish trend. As you can confirm from studying this diagram, four opportunities for opening PUT options arose after the price rebounded lower against the upper trendline.
To instigate a trending strategy, you must first locate an asset that has been trading in either a bullish or bearish trend for some time. You then need to draw the trendlines by connecting the series of lower highs for the upper trendline and the lower lows for the lower trendline in the case of a bearish channel, as illustrated in the above chart.
Once you observe price testing the upper trendline, then you should pause until the current candlestick completely forms so that you can verify that it closes beneath this level. If it does, then initiate a new PUT option using the USD/CHF as its underlying asset with the 1-minute expiry time. Envisage that your wager is $5,000 and the payout ratio is 75%. The four successful trades identified on the above chart would have netted you a staggering $46,890 in just over 2 hours if you reinvested your profits each time. Now, you can begin to understand why so many traders are raving about 60-second binary options.
3. Breakout Strategy
A favorite 60 seconds strategy is trading breakouts since they are easy to detect and can generate impressive returns. The key idea of this method is that, if the price of an asset has been oscillating for some extensive time within a restricted range, then when it does attain enough momentum to break out it frequently travels in its chosen direction for some considerable time.
Your initial step in implementing this technique is to identify an asset pair that has been fluctuating within a confined range for an extensive time period. As such, you are searching for a side-way trading pattern that is clearly delineated by a bottom and top, as demonstrated on the above AUD/USD 60 seconds charting diagram. Very often, the price will bounce against its floor and ceiling numerous times before finally breaking free, as illustrated again in the above figure. A sustained breakout should subsequently be assessed as a strong recommendation to initiate a new trade.
As the diagram above shows, the price does attain a clear breakout beneath its support or floor. You are now recommended to wait until the current 60 seconds candlestick is fully formed so that you can confirm that its closing value is undeniably below the bottom level of the previous trading range. This verification will provide you with some protection against a false signal.
After accomplishing this objective, you should now open a new ‘PUT’ binary option based on the AUD/USD with a 60 seconds expiry period. As this form of trading is definitely dynamic, do not risk in excess of 2% of your equity per position. If your equity is $10,000, then your bet should be just $200. Your opening price is 1.0385; your payout ratio is 80% and your refund is 5%. After the one-minute expiry time elapses, the AUDUSD stands at 1.0375; you are “in-the-money” and collect $160.
Advantages of 60-second trading
- Multiple trades– As the time frame of each trade is just 60 seconds, multiple trades can be carried out. Therefore, even if you earn minimal per trade, the sum adds up to a larger amount.
- Good mode of learning- As multiple trades are executed, you learn new insights with each trade, adding to your learning and experience.
- Less trading time- If the trade duration is more, more time is required to monitor the market changes. With 60 seconds binary options, the trade time is less.
- Market movements- Markets that move fast are highly volatile. With such volatility, you can make the most of such a fast-changing market and make profits with the slightest change as well.
- No time second-guessing- As 60-second binary options are just for 1 minute, you will not have time to guess your decisions second and get anxious.
Disadvantages of 60-second trading
- Risky- 60-second binary options can be extremely beneficial but dangerous simultaneously.
- Difficult to guess- With such a volatile market, it can be difficult to guess and predict market movements.
Use ratio-based money management
A ratio-based method determines how much percentage of the money you should invest regarding how much money you have. Having the ratio-based method of money control is a smart decision and a good source of action when starting.
This method is slightly less dangerous as it sees how much one should add to a trade based on how much money is available in your account.
When applying this strategy, you must first think about and decide on a ratio of the funds you’re prepared to put in danger. Generally, traders decide about 1% or 2%; however, with experience, professional traders sometimes choose to risk 5% of their capital.
If you lose money, you will always have the option to invest in the next transaction because you will have less money in your account.
But it also means that you always have money in your account and can choose a higher share of capital after each successful transaction. This percentage-based method helps ensure that you are making profits consistently.
(Risk warning: Your capital can be at risk)
Steps to take: 60-second Binary Options profitably
A great 60-second binary options strategy will generate a signal that helps you make money more consistently than before.
Studying, adapting, and testing different strategies is the only and the best way to find a good strategy. Any good trader will let you know the planning you will use to pave the way to your profitable success or failure.
Some strategies yield results in less time, and some strategies yield results in the long term. To recognize which strategies are suitable for the circumstances and which trades a good trader has.
Always experiment with strategies and customize them virtually. Only then implement the same strategy with real money.
Most asked questions:
How successful are 60 Seconds Binary Options traders?
Binary options trading is proclaimed by that one considers it as a high prize. Often it is workable to receive a good ROI. This high average return makes this type of trading very attractive to many experts and beginners alike.
Can I expand a 60 Second trade?
The answer is No. As the name suggests, the whole idea behind the 60-second trade is that you only have one minute to make a profit or a loss. Therefore, it is very doubtful to find any Brokers who will tell you to increase the expiry duration on a 60 Second trade because these trades are organized that way.
So if you want to get lots of long-term deals, you can always opt for lots of long-term deals.
Can I test out 60-second trades?
It would be great fun to make some demo trades with imaginary money when you consider trading 60-second binary options for the first time instead of immediately placing them in a real money trading environment. So here’s how you can try it and not lose real money as well.
Remember that using the strategy once will not pay off. Repeating trading in practice and adjusting the strategy is the only way to know how well the strategy is working for you.
Jumping from one idea to another won’t help. But sticking to the strategy and optimizing it according to your needs almost always yields a profit.
Now that you have learned some of the best binary options strategies in 60 seconds test them and master them with the help of a demo account. You will definitely be ready to market in no time!
(Risk warning: Your capital can be at risk)