One of the things that binary options traders find both exciting and useful with this type of trading is that the intervals are quite short. Typically, trades do not last longer than several minutes. For some time, traders only had the option of choosing trades that lasted a minute or longer.
Then, brokers began offering traders the opportunity to place trades that were just thirty seconds short. For traders that like large returns in a short period of time, this really was an intriguing prospect and continues to be for many. Of course, there is also a considerable amount of risk involved with these quick trades. Here are the elements of a strategy that you will need to utilize to give you a better chance at winning trades.
Conduct Market Study
There are traders who mistakenly think that just because the expiry time for this type of trade is nigh, it does not involve research. This is a false concept, however. One of the first things you are going to need to do is to conduct a market study to determine which asset best fits this criteria.
While it might be a relatively short period of time, there still can be a great deal of volatility involved depending on the market conditions.
Therefore, you will have to be fairly certain that an asset will move in a particular direction during that thirty second window. If not, you have the potential to lose your investment very quickly.
Use the 60 Second Trade Charts
Now, obviously the 30 second trades are over in half the time as the 60 second trades. Nonetheless, these still use the High/Low option when it comes to the trade. This means as a trader, you merely have to decide the direction in which the price will head in.
This is where you can use a 60 second open high-low-close-bar chart. Here, the bars are indicative of the price change trends. The green bars depict an increase while the red bars show a decrease in price. As long as you are able to see the changes in thirty level intervals, you will be able to apply the trend to an upcoming trade.
Minimize Your Investment
It is easy for traders to get sidetracked by the fact that they can make large returns within a short space of time. They often tend to overlook that they can lose just as much money within this same period.
Thirty seconds tends to be a rather volatile time period and it can be difficult to pinpoint just which direction the price is going to head in. As such, traders are typically advised to minimize the amount of money that they place in trades.
Ideally, the best possible amount is three percent of the money present in your account. This means that you have the potential to make a healthy profit. At the same time, you are also preventing yourself from losing too much as well.
It is important to stay focused at all times when placing a thirty second trade. As things take place so quickly, you cannot afford to be distracted or not be paying attention at critical moments.