4 Essentials to Succeed at Trading 60 Second Options
Before you get started trading fast binary options, you need to ask yourself whether you have what it takes to be successful with trading. Some of the things you need to make it are material assets, like a bankroll and a computer with a good high speed internet connection. Other things you need are immaterial—discipline, perseverance and patience. And then there are personal traits which are specific to 60 Second binary options traders. You have to be able to think fast and make decisions on the fly. Are you ready to trade 60 second options?
Here is a brief checklist before you start trading in the fast lane:
- A sufficient bankroll and high-speed internet
- A trading method and money management plan
- Self-discipline and the right attitude
- The personality of a fast-track trader
A sufficient bankroll and high-speed internet
Just how much money do you need to trade 60 Second options? Most binary options brokers will let you trade as little as $5 on 60 Second options, so that’s great if you do not have a lot of money to start out with. Since other types of trades usually start out at closer to $20, you may have an easier time sticking with a good money management plan if you trade 60 Second options. Some brokers will allow you to deposit as little as $100 to trade. Since $5 is 5% of $100, that is a reasonable amount of money to trade (2.5% would be better, but 5% is not bad).
If you are investing $5 per trade, keep in mind that you will only make a fraction of that if you win. You might make $4 if the payout is 80% on winning trades. Think how long it would take you to get anywhere at $4 per winning trade. Even if you had 5 trades a day, you’d still only make $20, and that would be very slow going. There is nothing wrong with doing it that way, but wouldn’t it be better if you deposited $200 and invested $10 per trade, or $400 and invested $20 per trade? I recommend that you start out with $250-$500 at a minimum, and stick with 2.5-5% of your account risked on every trade.
You also obviously need technology to trade. If you have a home computer with a high-speed internet connection, that is sufficient. Some brokers also offer you the chance to trade on your mobile device. Trading on a tiny screen has some drawbacks, especially when it comes to planning trades, looking at charts, and finding good setups. For that it really is much better to have a full screen. If you do longer term trades however, you may find it helpful to trade on your mobile. You can plan your trades on your home computer and then monitor them on the go with your mobile device. For 60 Second trading, you probably will do most of your trading on a home computer.
A trading method and money management plan
A lot of traders are looking for fast results, especially those who are drawn to fast trades. You may be thinking, “I can make a ton of money in minutes.” While you will indeed be engaged in short term trades if you trade 60 Second options, you must not forget how much money you can lose in minutes either. How do you become one of the winners instead of one of the losers?
The key is to make sure that you have a plan. Click here to get a plan. Your trading plan should include a method or system which allows you to spot trade setups and enter trades that are likely to result in profit. When you test out your trading method on past data and then in real time via demo testing, you find out how reliable your method is and you practice putting it to use. You also need a money management plan. This is usually as simple as saying, “I will only invest 5% of my account on any given trade.” The trading strategies however will likely take more time and effort to develop or discover.
There are a ton of free trading systems out there. Never make the mistake of thinking you’re totally on your own with binary options trading. There are a lot of other traders who are out there sharing their knowledge for free online. Try looking into some of these trading methods. If you find one that looks promising and intuitive to you, start testing it out and see if it works. If you get great results, then you can consider going live. If you plan to trade 60 Second options, make sure you also conduct your testing on that timeframe.
Self-discipline and the right attitude
You will notice that a number of times I have already stated that you need to learn patience and expect to do a lot of work and invest time to make any trading plan succeed. If you do not have this attitude and this frame of mind, you cannot expect to make it in binary options trading. It takes self-discipline to invest time into learning how to trade, testing trading strategies, and then sticking with the choices you have made. It is a learning process that never really ends, and you have to be ready and willing to put ongoing effort into continuing to improve, even when you are profitable. See if you have what it takes.
The personality of a fast-track trader
Fast binary options are not for everyone. Most traders in fact do not really do well trading really long or really short-term options. The majority of traders will excel with trades which are neither very long nor very short—in other words, those which do not test patience or speed all that much. Some traders however have a personality which is best suited to very fast trades or very slow trades. You may be one of those traders who is best suited to 60 Second options and other fast trades like two and five minute trades. If you are able to adapt quickly, keep a cool head, and make decisions on the fly when things change, you may very well be one of those traders. If you second guess yourself a lot with longer-term trades but have an easier time making smart, consistent decisions when events move quickly, you again may be suited to trading 60 Second options.
It is possible to do well in binary options trading, and to trade 60 Second options and other fast options professionally. To do so however, you need a bit of money to get started with, a decent internet connection, the right mindset and attitude, and the ability to thrive in a fast-paced environment.
Photo Credits: Success