Binary Options 60 Second Trading – How to Use the Momentum Strategy to Make Money
Binary Options 60 Second Trading – How to Use the Momentum Strategy to Make Money
November 5, 2012There are many binary options brokers out there offering trading on the 60 seconds platform. If you have no previous experience trading binaries I highly recommend you speak with one of the account managers or analysts employed by your broker after you register a real money account but before you start risking money.
What is 60 Second Trading?
Sixty second trading is a trading vehicle structured much the same way as the more traditional digital or binary option up/down, above/below format we are all familiar with. The only difference is that you have the option of trading a very large amount of short positions during a 60 second time frame.
If you have never traded 60 seconds before, but have some experience trading I urge you to risk a small initial amount, let’s say $500 just to get feel for it. From my experience I can tell you that the level of excitement is unparalleled, and it is extremely addictive because of the high level of risk. But it can also be immensely profitable if you know what you are doing.
What is the Momentum Trading Strategy
Can you recall the number of times you have carefully analyzed or researched a specific stock, index, commodity, or currency both on a fundamental as well as technical level, but when you had to actually deposit and start executing trades something stopped you?
Join the club, the Momentum trading strategy is designed to empower you and enable you to get past this point of hesitation and get you started on making money quickly.
How Does it Work?
The momentum strategy gives you more control over your trades using a variety of different means. I would urge amateur traders to check out as many options and tools as they can and eventually develop their own trading strategies. The momentum trading strategy relies on the Average Directional Index – ADX, which is a non-directional “technical” indicator that measures the strength of a trend. In other words up or down trends don’t influence this index.
The ADX is usually seen in a plotted chart adjacent to the DMI or Directional Movement Indicators. The ADX is a variant of the relationship between the DMI lines. Analyzing the ADX correctly and evaluating trends will assist you in identifying the strongest trends and entry signals so you could profit and actually make substantial gains and money trading binary options online.
Other influencing factors are:
- The volume of trades executed
- The moving averages
- Crossover from the resistance line to moving average
The volumes of the trades is a diagnostics tool used by traders to see if the market is bullish or bearish about a certain asset. The more volume, the more traders invest in futures, and the higher the demand becomes, and the candlesticks pick this up immediately.
The moving average is basically a technical charting tool designed to give you a more precise measure of an asset over a period of time. Using the moving average line provides you with a more accurate snapshot of the trend line.
Crossing over from the resistance line to the moving average allows you to identify the right entry as well as exit signals in binary momentum trading. In other words, the way to create a winning strategy is by opening up a few options and understanding how to rely on the right indicators without falling into traps.
Utilizing the Momentum and High Frequency Trading Strategy to Make Money Trading 60 Second Binary Options
Before you do anything you must find the broker that is right for you. For reference please check out our reviews section. Once you have done that feel free to make your inital purchase and claim your bonus. Generally speaking depositing with ewallets like Moneybookers or Neteller is more recommended then a credit card because of the anonymity and budget control you get.
Then you open up your charting software and decide if you want to trade currency pairs such as USD EUR, EUR GBP, USD CAD, or alternatively commodities, indicies or stock.
Select the 60 second option and start buying positions. Look at the non-directional ADX as a point of referance, but also try to trade the news and see if there is an increased trading volume on a certain asset. Identify the correct entry signals and start moving in and out of trades using the high frequency trading strategy also knows as rapid fire.
To summarize, combining a variety of trading strategies such as Momentum, High Frequency, and Rapid Fire, conducting proper research, identifying the right entry and exit signals, finding the best binary options broker, and finally taking a risk and buying a position are all crucial. Your ability to master these tools and strategies will make all the difference between you ending up out side of the money, or in the money with substantial gains and profits.
