The Internet has revolutionised the world of trading and investment like nothing else in recent history. For the first time, pretty much anyone with an Internet connection and the desire to get involved has every opportunity to begin their own journey into binary options. More recently, some of the best trading platforms available have begun accepting minimum deposits as low as $10, meaning that even those with very limited finances available can still try their hand at trading and see whether it works for them.
But in terms of the specific types of trading that have become available over recent years, there’s one that has become more popular than just about any other. Indeed, more traders than ever before at every level across the board are right now diving into 60-second trading – a new standard in ultra-fast binary options.
Risk and Reward
In terms of the advantages, the most obvious is of course the way in which the results are relatively instantaneous. Whatever it is you are looking to trade, 60-second trading makes it possible to know the outcome in just one minute. While there will always be those who prefer to play the long game, others are far happier entering into trades and getting the results almost immediately. Needless to say, to make the right decisions when it comes to 60-second trading is to stand every chance of earning healthy profits in no time at all. Indeed, consistently make the right decisions over even a short period of time and it’s perfectly possible to transform a small deposit into an extremely impressive profit.
That being said, it’s important to remember that 60-second trading can be considerably more difficult to predict that longer-term options. The reason being that even when a chosen option – say GBP/EUR – appears to be following a clear and steady trajectory, this does not mean that within the next 60 seconds it may not swing extremely slightly in the other direction. In fact, 60-second trading is often considered to be much closer to a 50/50 gamble with each position entered into than any other kind of trading.
The long and short of it therefore being that 60-second to a large extent presents risks and rewards in equal measures.
Clearly therefore, 60-second isn’t for everyone. Ideal for some perhaps, but not for others. But for anybody with a genuine interest in getting into this particular area of binary options trading, what’s needed for success? Or should that be, what kinds of things will the trader in question need to improve the likelihood of success while trading 60-second options?
Sufficient Finances and Reliable Internet
First of all, you will need to take into account your current financial situation. Specifically, how much you can afford to trade with and whether you can absolutely afford to cope with losing it all. One the most attractive things about 60-second options is the way in which it is often possible to trade with as little as $5 or even $1 with every trade. For obvious reasons, this can be highly attractive for newcomers and for those with limited available finances. But at the same time, you need to think carefully about what exactly you expect to get out of your trading activities, should you be successful.
For example, if you choose to go ahead with predominantly $5 trades, you need to be aware of the fact that if you are successful, you will be paid a percentage of the amount invested. If the broker you work with offers an 80% payout rate, this means you would take home a profit of $4. Which in turn means that if you were to enter into five successful trades every day, you would only come out at the end of the day with a $20 profit. And that’s assuming you don’t enter into any unsuccessful trades during the day – the likelihood being that out of every five trades, you may lose one or two. In which case, you would come closer to breaking even.
Of course, there’s absolutely nothing wrong with trading like this, but you will need to be realistic in terms of your expectations. It’s a different thing entirely to put say $500 on the line and earn $400 profit in just 60 seconds. But then again, to lose would mean to kiss goodbye to the whole $500 in a single minute. As such, it’s important to consider your financial situation carefully, along with your targets and expectations.
Quality Broker and Internet Connection
The importance of working with a quality broker in all aspects of binary options trading really cannot be overstated. Particularly when it comes to 60-second trades, you need an extremely dynamic service package with immediate responses. This is not the kind of trading where it is acceptable to work with any kind of platform that is unreliable, slow, sluggish or prone to breakdowns of any kind.
Of course, the same also applies to your own Internet connection. Once again, the fast-paced and dynamic nature of 60-second trading calls for a comprehensively reliable and strong Internet connection that isn’t going to let you down at the worst possible time. If it does, you could either miss out on a golden opportunity or make the kinds of mistakes that could cost you dearly.
The Willingness to Do Your Homework
To assume that you can predict the outcome of 60-second trades simply by examining recent performance is a dangerous game to say the least. Just as is the case with all other types of trading across the board, a whole world of factors and pressures can instantly and dramatically alter the course of any given tradable asset at any time. Even if it’s obvious that USD/AUD has been plummeting nonstop for days, this doesn’t mean that at the exact moment you enter into your position, things won’t swing in the opposite direction.
As such, one of the most important rules when it comes to success in 60-second trading is to be willing to research, study and monitor the markets – just as you would with any other kind of trading. Many 60-second traders follow a more random approach and treat the whole process a little like 50/50 gambling. But if you want to ensure that the odds are tipped at least slightly in your favour, you need to be willing to invest the necessary time and effort into the process.
Patience and Self-Discipline
The fact that what we are talking about here is 60-second trading would seem to suggest that patience is one thing that isn’t strictly necessary. After all, this is one of the few approaches to trading that can, at least theoretically speaking, make you a lot of money in a short period of time. Unfortunately, this is also the kind of attitude that more often than not leads to a failure. As already mentioned, 60-second trading is just as much about the time and effort you invest in the research process as any other type of trading across the board. While it’s true to say that 60-second is nothing short of a magnet for traders with little to no patience, it is a venture where patience really is a virtue.
Any lack of patience vastly increases the likelihood of entering into the kinds of trades that simply make no sense, instead chosen at random on a whim. But what’s even more important when it comes to this kind of trading is to have the self-discipline required to know when to walk away. Given the way in which it is technically possible to turn a profit in just 60 seconds, trading like this makes it extremely tempting to attempt to recoup losses after a losing streak. Needless to say, this is a comprehensively bad idea and for the most part will only ever lead to further loss.
As such, patience and self-discipline really are of critical importance for anyone looking to get into 60-second trading.
A Strategy and Schedule
Last but not least, the important thing to acknowledge right away is that there is no such thing as a guaranteed strategy for success with 60-second trading. There never has been and there never will be – strategies that guarantee success in any kind of trading simply do not exist. However, this doesn’t mean that it is not important for you to come up with your own specific strategy and schedule, to be followed along the way.
Quite simply, they should involve things like the assets you are intending to focus on, how much time you intend to invest in both research and the trading process itself, how much you are willing to lose before walking away, how much of your profits you intend to reinvest, how much you intend to take out and put into savings and so on. As with all kinds of trading, a random approach is the perfect approach for those looking to limit their potential for success.