Thinking of trading 60-second binary options? There are plenty of warnings and precautions out there for new traders who want to get in the fast lane (I have penned a few of them myself), but today I want to talk about some of the benefits of trading 60-second binary options. Specifically, I want to focus on the expiry time itself, and not simply on why it is great to trade binary options. The benefits of binary options trading are many: You can trade with a very small investment amount, you can access a number of different markets, and you can get started quickly. But why trade 60-second options?
|REVIEW||MIN DEPOSIT||AVG RETURNS||VISIT BROKER|
|$50||160% - 180%||VISIT SITE|
|$250||80% - 90%||VISIT SITE|
- 60 Second options are exciting.
One of the main draws that 60-second binary options have is the thrill that comes with trading them. Trading in general can be fun and exciting, but few things beat the tension of wondering whether you are going to gain or lose money in the next 60 seconds. This is a benefit for traders who are playing the markets for entertainment value. It can actually be a detractor for serious traders. But since many of the traders who participate in binary options are in it for pleasure rather than profit, it is well worth pointing out how fun the 60-second options can be.
- Tons of trading opportunities abound.
If you are trading using a trading method, you need to have specific entry criteria met before you can consider entering a trade. As you have probably observed already, this can really limit the number of opportunities out there, especially if you are trading longer expiry periods. If you are trading weekly or daily timeframes, you may only find a couple of great trades per month on any given asset. If your timeframes are hourly or shorter, you may find a few great trades per week. But if you are trading 60-second binary options, you may find a number of good setups every day, and all without having to explore a wide range of underlying financial instruments.
This can make it easier to become profitable, in the sense that it allows you to stay active in the market without long breaks. Think about it. Would you rather have two winning trades per month or twenty (all other statistics being equal)? So that is another great reason to look into 60-second options.
- Great for people who second guess themselves.
This may not always be the case, but many traders who have a tendency to second guess their trading decisions have an easier time profiting during faster expiry times. If you have hours, or days, or even weeks to second guess your trading decisions, you are far more likely to become impatient and anxious and perhaps do something foolish that violates your trading rules—like continuously exit early and net a smaller amount of profit on your trades. Depending on how large or how many your losses are, this can not only make your overall profits smaller, but possibly nonexistent.
With 60-second trades, you only have one minute to be in the trade, so assuming your confidence in yourself and your trust in your trading method can last through that minute, you are far more likely to hang in there and see your trade through. Most traders actually struggle with the opposite of this problem, psychologically: they feel like the trades they are in go too fast for them to think and deal with. But plenty of traders fall into the second-guessing category as well. You will most likely figure out where you stand pretty quickly when it comes to your emotions and your confidence while trading.
- Easier to schedule 60-second trades.
Odds are you are working a full time job right now. While you will find scammy websites and advertisements which urge you to quit your full time job and trade for a living right now, that is not a good idea. It will take you some time to become profitable consistently (assuming you ever do), and even longer to make enough money where you can pay for your lifestyle and grow your trading account purely from trading. So you are going to have to trade on top of your other responsibilities and priorities. Learn how to balance full time job with trading here
As you might imagine, that poses quite a challenge. It can be tough to monitor your trades or place entries or early closures, double up orders, or rollovers when you are at work. Mobile trading can be a big help with this, but not everyone works in a position where they can even do that (customer service representatives for example, who spend all their time on the sales floor of a retail business or at the cash register).
But if you trade 60-second binary options instead of longer expiry times, you can sit down for an hour or two after work each day, look for the best trading opportunities, and take them. Your trades will open and close within the time you set aside for your trading each night, and you will not have to worry about monitoring them at work (or wondering how they are doing without you). This may also make it less likely that you will burn out trying to juggle these different tasks and obligations.
- Trade smaller amounts of money.
If, like many other binary options traders, you are getting started with a very small initial deposit, you may not want to trade the full amount of money required as a minimum investment amount for the majority of trade types offered by your broker. For example, if your total bankroll is $250, and most trade types offered by the site where you are trading require a $25 minimum trade amount, you would be trading 10% of your account. While this is not completely absurd, it is still pretty high. A more reasonable amount of your account to trade would be half that or even a quarter of that. 2.5% is the amount most commonly cited by long term successful investors.
What is 2.5% of $250? It is just $6.25. That is less money than you are able to trade according to the minimum investment on the majority of trade types! So what do you do? Well, you could look at the 60-second options offered by your broker and check whether the minimum investment amount is lower. Many brokers who have higher minimums for other trade types will let you trade 60-second options for only $5 per trade. That falls within your 2.5%. And while it may not sound like a lot of money, remember, there are more trade opportunities with 60-second options, so your success may add up across your trades to be quite substantial.
So now you know some of the reasons to consider trading 60-second options. It is usually best to start out by doing some trades with longer expiry times first so you can get used to trading and learn more about your trading personality. It is easy to blow through your bankroll doing 60-second trades (though it will take you longer if you trade small amounts as suggested above). Think about trading like learning how to drive. You start out on slow neighborhood streets and parking lots. Then you may decide you want to go faster, so you get on the highway, and from there you move on over to the left hand lanes.
Trading binary options is like that. First you practice in the parking lot. That is your practice account. Then you move onto some slower neighborhood roads. This is equivalent to doing some trades with day long expiry periods. Then maybe you feel ready to move onto the highway. These trades are an hour long, fifteen minutes long, or similar. At that point, you may feel like you are ready to go even faster. Then you can move up to 60-second expiry times; that is the binary options fast lane! Hopefully it will be a road to profitability and success. Good luck!
Take advantage of how and where to trade 60 second binary trades here!