If you want to make some money by trading 60-second binaries, then you need to employ a strategy, read charts and look for indicators before you even begin to trade. If you dont do that, then you are basically gambling your money (and you might even have a smaller chance of winning than some gamblers considering the fact that even gamblers use strategies in games like Blackjack, Craps and Baccarat).
Strategies are in the heart of the money process of trading binaries. If youre not familiar with charts and technical analysis, visit the “Technical Analysis” sections of our site. We have a very comprehensive guide to technical analysis, including charts, types of charts, patterns, indicators and more.
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Unlike most other types of trading, though 60-second binaries require you to be extremely quick and make decisions on the stop. Often times you will have mere seconds to take action and you cant afford to lose even a single moment. But having a good strategy, although its a good start, is not enough to make you a successful trader. You also need to be disciplined (whats the point in having a good strategy if you dont follow it) and you need to know when its time to back down and stop trading.
Many investors make the same mistake when they lose from a trade – they try to immediately get their money back and thus lose a lot more because their emotions are clouding their judgment. This is always bad because often time you tend to see whats not there and lose a lot more, which increases your anxiety and the need to make a fast profit, which leads you to even more bad trades. The way to avoid this is to simply stick with your strategy.
Basic knowledge you will need in order to form or follow a strategy
Many traders refer to 60-second binaries as gambling. They would be right if a good trader wasnt working with so much information, processing data and making good money out of his trades. 60-second binaries are only gambling if you gamble your money away counting on luck. If youre methodical, know the market and and are good at technical analysis, then you will never have to gamble in any way, shape or form. Of course, there is no such thing as a 100% good strategy. There is no magical formula that will give you 100% success rate from your trades and make you millionaire in a few hours. However, there are strategies that increase your chances of winning, especially if you can find the right indicators.
In order to trade well, you need to know the market. You also need to have the ability to spot trends in their genesis and see indicators when they are there. You wont have any time to lose so you need to be able to do all of this in your sleep. You will have to work with lots of charts, so learn how to read them. We have very comprehensive guides on our site so go look them up if all of this seems like a collection of random words to you. If someone told you trading binaries was going to be a walk in the park, then someone lied. You will have to work for it.
Develop Analytic Skills
You will have to be analytical and have a great attention to detail and you have to learn to accept failure, because no matter how good you are, some of your decisions will lead to losses. You need to have a responsible money management so that you can ensure that the losses dont mitigate the profits. Trading binaries is a demanding job. Yes, it gives you lots of freedom, but it requires lots of work, as well.
There is one more thing you need to keep in mind. No matter how good a strategy you have, you need to learn to adapt. The fact that a strategy is good in a certain market doesnt mean that it will be good in every market. You need to analyze, adapt and trade carefully. This is the only way to become a successful trader in the highly competitive world of 60-second binaries.