You have probably read plenty about the risks and benefits of trading binary options in general, but what about the specific advantages of trading 60-second options? Are there benefits which are specific to trading fast that don’t apply to other expiry times and types of trades? Actually, there are quite a few.
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Here are 5 reasons to consider trading 60-second options over other types of options.
60-second options offer fast-paced fun.
Okay, so this is not the most pragmatic reason to trade 60-second options, but let’s just get this out of the way. 60-second options are some of the fastest trades you can place on the internet right now. That is true whether you close out early or stay in the full 60-second trade and wait for it to expire. For traders who are getting into binary options for the sake of a thrill, you will not beat 60-second options for fun and excitement (read more about handling these turbulent emotions here). So that is one reason to trade these fast options, but there are other, more practical advantages as well.
Actually leave the office when you are not at your computer.
One complaint some traders have about trading 60-second options is the fact that you spend a lot of time at your computer watching the markets and waiting for great setups to appear. You cannot just wait for trade alerts for the obvious reason that by the time you get the alert and can act on it, the opportunity has passed. There is a benefit, however, which is this: the trades you get into, you also get out of quickly. So you can set aside an hour or two a day to do your trading activities, and the good part is, when you are done, you turn off the computer and get back to the rest of your life. You don’t keep worrying about whatever longer-term trades you are in or constantly checking back in on your mobile device to see if you need to do something about your trade. You can actually relax and take a break. For some traders, this is very beneficial.
Place more trades more often.
How many times have you come up with an awesome system for trading, but when you use it on slower trades (perhaps those that take several hours to expire), you literally only find one or two good setups per month on any given asset? You can trade more assets, that is true, but not all assets are suitable for trading with every system. The other way to get more trade opportunities is to use smaller expiry times. You may well find dozens of great setups per month, maybe even per week, if you switch to a faster expiry period. 60-second trade setups crop up every hour, and lots of them. You may be able to make a lot more money if you trade this way.
Reduce problems with impatience.
Sometimes you may have a temptation to second guess your trading decisions while trading live. Not every trader is afflicted with this problem. It comes down to psychology and the way you are wired. You may want all that extra time, and some people do much better when they do not feel rushed. But for others, all that extra time is time to double-guess decisions and make stupid errors in response to anxiety.
When you backtest trades, it takes only a matter of seconds to execute a trade on paper. But when you are in a real trade, you could be in that trade for hours or even days, depending on the expiry time. That is plenty of time to make foolish reversals in trading decisions if you do not trust yourself or the situation. Waiting for a trade to complete can be a very tense time. It is all too easy to watch the little movements up and down and wonder if you have made a mistake and should just get out of your position. More often than not, these second guesses do not pay off. While this weakness can be overcome, you also may simply find it easier to do 60-second trades, since you will again only be in the trades for one minute or less.
Learn about other mistakes to avoid here
Profit from small movements in price.
Markets do not spend all or even most of their time trending. Indeed, the vast majority of markets spend the vast majority of the time consolidating. It is tough to make money when the market is consolidating because it can be hard to spot good entries, and even when you do, price movements can be small. With 60-second trades however, you may find great entries even in markets that are consolidating, because you are looking to profit from small price movements to begin with. Use this as a guide to get you on the right track to profits
A Cautionary Note
If you are a brand new binary options trader, I recommend that you trade slower expiry times before you jump into 60-second trades. Why? Because for whatever reason, most traders are not really wired for fast trading. That is not to say that you are not one of those people who will thrive in a fast-paced market, because you may be. But it is best to start with a slower expiry time, say an hour or fifteen minutes, get a feel for things, and then move up to 60-second trades if you feel you are ready. This will also ensure that you will not make newbie mistakes with the platform because you are in a hurry and are not used to executing trades yet.
You will find a lot more cautionary notes like these if you read other trading articles on the web, but that does not mean there are not substantial benefits to trading 60-second options, many of which are actually quite practical, as you can see. 60-second trades work great for some traders and some trading systems. You may be one of those traders who can benefit from switching into the fast lane!
Photo credits: 5, Caution