Understanding 60 Seconds Binary Options Trading

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Trading 60 seconds – how to trade them?

Trading 60 seconds is actually trading binary options with 60 second or one minute expiration time. It is very simple, you have 60 seconds to trade. You will lose your money if your trading is wrong at the 61 second but if your trade is right than you have jsut made a profit. This kind of trading is one of the most popular binary trading at the moment. But still you need to be aware that nothing is as simple as it sounds.

What you will learn here:

  • What are 60 seconds binary options?
  • What are important factors?
  • How to spot a potential 60 second trade?
  • Tips!

The biggest reason of the success that 60 seconds trading is having is because of the fast paced action with the ability to profit of returns of 70% or more, on average its 85% return of investment. The prices are all at high frequency because the expiry time is very short. You have to be very careful while trading 60 seconds because you have very little time to predict the trade. That’s way it’s recommended to use a demo account first before you decide to use real money.

Binary options broker and charting software are two of the most important tools you need to successfully trade 60 second binary options beside the right education. The best solution is to have a broker that is offering you a 60 second binary options and a software that will allow you to analyze the asset or instrument in which you want to deal. Another important thing is your speed, you need to be fast in making decisions with this kind of trading.

The software is used to find out the trend which actually means the general direction of the price in the market. The trend is definitely your best friend in a 60 second binary trading. In most of the situations, the price will continue in the same direction for some time. If the price is falling, it’s called a down trend and if the price is rising it is known as an uptrend.

IMPORTANT FACTORS

It is important to consider a few factors before you decide to enter into these types of trades. The most important factor is to have a strong knowledge about the binary options trading platform. You should not put your money on a platform that you don’t understand.

When you learn how to open, close and adjust the trades, it’s important to test the platform’s efficiency. This process is important in order to make sure that your platform is capable of executing you trade at the exact time and price you are expecting.

The last thing you need to know is the trading parameters themselves that will help you to form the basis of your trades. You need to know what are you trading, stock, currency, commodity or index and you need to know the expected price direction as well. It’s recommended to have all of these parameters thought out beforehand because you will not have much time to change your positions.

FAST MOVING MARKETS

The 60 seconds binary trading system is the fastest way to make profits in any trading system but it’s also the fastest way to lose your money as well. That’s why risk management is very important in 60 seconds trading. The good thing is that you can trade in increments and this allows you to limit your risk in fast moving markets. There is a rule saying that you should not put more than 2% of your trading account into a position at any one time, especially when dealing with 60 Seconds options.

HOW TO SPOT A TREND?

The prices are shown as moving waves, use two trendlines and join the highs with one trendline and use another trendline to join the lows of the candles.

The picture above is an example of a downward channel for price action over EUR/USD 1 minute chart.

The picture above is showing an uptrend which is marked by blue trend lines in order to form an upward trending price channel.

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The uptrend will end if the candle starts to close below an uptrend lower trend line. If the candle starts to close above the upper trend line will mean the downtrend has end. Spotting a trend is one of the biggest and most important tasks in 60 Second binary options.

As example, we will put a call trade in an uptrend only and when the price touches the lower trend line we will enter a call trade on our binary options trading platform.

We will also put a trade in down trend only so when the price touches the upper trend line we will enter a put trade. It’s important to always remember that prices moves like waves so you need to understand the pattern and when the price is ready to swing down or up again.

IMPORTANT TIPS

This kind of trading can be very rewarding to some people but new traders should recognize that they can also be more challenging and may pose a higher risk in some ways. It’s true that you can make a lot of money very fast on 60-second trades but you can also lose them more quickly as well. The trades are going very fast and even some experienced traders can’t manage to keep up with them or manage such small increments of time. That’s why new traders should start their training on slower trades and then work their way up to faster trades.

The 60 second binary trading can be very addictive because they go so quickly. Many people get caught up in the excitement and not realize how quickly are spending their money. You should always try to stay on top of what you are doing and keep an eye on your account balance. If you find end up in a situation where you’re losing more than you’re wining, it’s recommended to back off from the market, take a little break, figure out why you are losing, and then come back fresh.

If you manage to learn and master the 60 second binary trading, you have a big chance to earn a lot of money at lightning speeds.

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To better understand this topic, lets look at the example below Both WinOptions and ZoneOptions are binary options brokers, specializing in enabling people to trade in the financial products known as binary options. Losses are part of the game and your stops should protect you from losing more than you are comfortable with. There is no currency control or any tax on capital gains. Electronically traded contracts, such as the eminis tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread. Binary options are usually traded over the short term, which expiration dates ranging from five minutes to the end of the day.
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Review: 60 Seconds Trading Strategy

When starting yourself in binary options, you definitely want some strategy to trade by. Of course, you can jump into a live account and press Call/Put button listening to your intuition but that will not end up well for your financial prosperity.

This is a review of one of the strategies that can be freely used by any binary options trader. You will learn the strategy’s rules, get to know its advantages and find out how to avoid its main cons.

Before proceeding to the review of the 60 Seconds Trading Strategy, it is necessary to explain the strategy itself in details. And before doing that, it will not hurt to remind you of what “60 Seconds” option really is.

60 Seconds Option

60 Seconds is a special type of binary options where the outcome of a trade is determined within one minute time. If you have chosen Call and the underlying asset (currency pair or stock, or whatever) finished above the entry level, you win. If you have chosen Put and the underlying asset finished below the entry level, you also win. In other cases, you lose. It is really that simple.

Strategy

Although there are many strategies for trading 60 seconds options — complex, simple, technical, fundamental, genial or simply absurd, there is one strategy that is mentioned in several other binary options websites. This system is often called just 60 Seconds Binary Options Strategy and is usually given out for free. It is frequently described in connection with Finrally trading account, though it is not a requirement as the strategy can be used with any other broker featuring “Option Popularity” indicator for its binary options (nearly all BO brokers have that.)

There are several variations of the 60 Seconds Binary Options Strategy, but usually it consists of only three simple steps:

Step 1

Find the underlying asset (a Forex pair or some commodity, or any other trading instrument), which is trading well above the middle of the chart or well below it. See example:

Step 2

Check the popularity indicator for this asset. It shows how many binary traders at this particular broker are choosing Put/Down or Call/Up for this option. If the asset is trading above the middle of the chart (see Step 1), popularity of Put should be higher than popularity of Call (more than 50%). If the asset is trading below the middle, popularity of Call needs to be higher than popularity of Put. See example:

Step 3

If both conditions are fulfilled, it is now time to assume a position. Remember, you choose Call only when the majority of traders is “calling” and you chose Put only when the majority is “putting.” If at least one of the conditions is not met, proceed to Step 1. In our example, we ought to choose Up (Call) for AUD/USD as both conditions apply:

Some More Examples

To understand how the system works, here are some more examples.

Bad. This EUR/USD example from GTOptions would fail on Step 1 as it is trading near the middle of the chart:

Bad. This EUR/USD example from BinaryCM fails at Step 2. While the first condition is fulfilled (the currency pair is trading quite below the chart’s middle line), the Put/Call ratio is not showing in our favor:

Good. This GBP/CHF example from BinaryCM is a perfect fit for the strategy’s conditions. It is trading far down below the chart’s middle and the Call popularity exceeds Put popularity by 38%:

Bad. This USD/JPY example from Finrally is showing another mismatch — the pair is trading above the middle line, while the traders are predominantly choosing Call:

Bad. While there is a nice 40% difference in favor of Call popularity for Gold in this example from Finrally broker, the metal itself is trading right at the middle of the chart and thus cannot be traded using 60 Seconds Binary Options Strategy:

Variants

While the steps described above may certainly be called canonical for the 60 Seconds Binary Options Strategy, there are many variants. Some are quite similar, while others are completely different.

The former ones only add or remove one step or alter money management rules. For example, they may omit the first step (disregard the relation of the current price to the chart’s average line) but add Martingale position sizing instead.

The latter ones may add steps to check like 3–5 technical indicators more on a trading platform. For example, they may call for signal confirmation by MACD, Stochastic Oscillator and Parabolic SAR on MetaTrader 4 chart for the traded asset. In any case, these heavily modified 60 seconds strategies are beyond the scope of this review, as they are very different from what is explained in the section here.

Why It Can Work

While there is some potential in this strategy, the websites boasting “87% chance of winning” or something similar simply do not know what they are talking about. There are four noteworthy improvements this system has over random or “blind” trading.

Overbought/Oversold

By choosing only charts where the asset is trading significantly above or below the middle line we trade Calls only on oversold instruments and trade Puts only on overbought ones. Basically, what such chart disposition means is that the asset is trading well below or well above its average value for the last hour (that is the period those charts show). Buying something that is oversold and selling something that is overbought can be a good idea and is a basis for some popular Forex and stock trading strategies. That is until you get into some strong rally that way…

Sentiment Measure

By choosing only direction, which is currently prevailing among other traders, we go with the crowd in this strategy. Trading with the crowd is often considered lame and , but since the position is lasting only 60 seconds with this BO strategy, we just make sure to go with the trend by gauging the current market sentiment.

Combo

Many traders try to create complex strategies combining multiple technical indicators, forgetting that some indicators are based on the same data set and combining them only reduces the amount of signals, while keeping their quality at the same low level. This 60 seconds BO strategy is doing it the right way — it combines technical indicator (chart average vs. current price) and sentiment indicator (Call/Put popularity). Although, these parameters are somewhat connected, they possess a satisfactory level of independence to be used together in a system.

Systematic Approach

What many newbie traders lack when they approach something as simple as binary options is a system. They trade almost randomly — buying (Call) and selling (Put) just by intuition. This lack of any system may lead to excess losses, overtrading, emotional instability and eventual disappointment in binary trading. Using a system, trader gets a set of rules to act upon, leaving a lot less space for errors, emotional trading and pure gambling. A systematic approach even with a subprime strategy may lead to brilliant results as it works miracles for trading discipline.

Why It May Fail

While it certainly has its advantages, the 60 Seconds Binary Options Strategy is not as good as some marketing gurus make it look to be. You should be aware of this strategy’s potential problems and real dangers. There are three important disadvantages to it.

Lack of Statistical Evidence

There is no statistical data that would prove this strategy’s or even profitability. While some websites show screenshots of statements full of winning trades, they are hardly proof to anything. The difficulty with this 60 seconds option strategy is that it is extremely hard to automate and backtest. And since binary brokers rarely provide demo accounts (at least for long period of time), you would have to risk your real money for potential gains.

Popularity Inconsistence

The popularity indicator is a great tool for measuring market sentiment for a given underlying asset. Unfortunately, it is not consistent between different brokers. It may show one value on one broker and at the same time show a different value on another broker. The readings may even contradict each other completely. See the screenshot of the AUD/USD popularity index at Finrally:

And see the screenshot of the same pair taken almost simultaneously at GTOptions:

Evidently, the first chart shows Call popularity of 45% vs. Put popularity of 55%, while the second chart shows a strikingly different ratio of 62% vs. 38%. It is quite obvious that those two charts would generate totally different trading signals. In this case, GTOptions‘ chart would generate a Call signal, while Finrally‘s chart would give no signal at all as the popularity index contradicts the current price position.

The source of the inconsistencies is in the fact that brokers know only their own traders’ positions and have no knowledge of the situation in the market as a whole. Additionally, some brokers may display completely random values for popularity indicator or even manipulate it to drive traders into some convenient (for broker, not for traders) direction.

Low Yield

The majority of brokers offer 70% yield on 60 Seconds binary options. Although 70% may sound a lot for a 60 second gain, it is not a lot compared to a potential loss of 100% within the same 60 seconds. According to our Broker’s Edge Calculator, 70% payout with no reward results in 15% average loss per trade. This means that if you win at the same rate as you lose, you will be losing $1.5 on every $10 trade with 60 Seconds options.

To overcome the intrinsic losing predisposition of this option type, you would need to win at least 59% of your trades. It is a significant edge and even it would lead only to breakeven trading. You would require a better edge to earn consistently with 60 Seconds options. Whether the 60 Seconds Binary Options Strategy is able to provide the winning rate of 60%/40% is a million dollar question. Unfortunately, you would need to risk your money to find out.

Tips and Recommendations

Although the strategy is in and of itself pretty instructive and with clearly defined rules, your experience with it may be improved significantly by knowing some of the accompanying nuances and applying some minor tweaks.

  • Find a broker that gives higher payout than 70% on 60 Seconds binaries. For example, GTOptions offers 75% on 60 Seconds for some currency pairs and commodities. The rates may vary depending on market conditions, so check other brokers too. Shop for best offers!
  • Do not forget that you may use price chart and popularity indicator from one broker to generate your trading signals and enter the actual trade with another broker. This can be very convenient if your main binary broker does not offer some of the tools required for the 60 Seconds Binary Options Strategy.
  • Keep your positions small relatively to your total investment amount. Do not risk more than 1% or 2% of your capital on one trade. For example, if your deposit (which you can afford to lose) is $1,000, do not trade with option size bigger than $15-$20.
  • Do not double up your stake on losses. It is a sure way to lose all your money.
  • Be aware of your broker’s trading schedule — not all brokers offer 60 Seconds options during normal trading hours.
  • Keep an eye on the trend strength. If the underlying asset is trending strongly, this strategy will produce to many bad signals. Just avoid trading this instrument for some time if you spot a stubborn rally or correction.
  • You will get a lot of trading signals with this strategy, especially if you trade with several brokers and with many instruments. Do not lose your head in trading, keep calm and stop trading for some time if you start making mechanical errors.
  • Try to keep a trading log. You will not be able to log every trade in mode, but in the end of the day, open your account’s closed positions and write everything down, pointing out the “weak signal” trades, positions entered by mistake or any other peculiarities; calculate your win/loss ratio for the day and overall. Revise your approach to trading if you start making net losses for several days in a row.
  • Do not forget to bank your profits regularly as it is the only way to prevent really big losses.

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:

  1. Whether the market will rise or fall.
  2. 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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