Binary options trading is a simple but highly rewarding investment, of which, traders speculate on the price movement of a financial asset. To be specific, they determine the asset’s price whether higher or lower at the end of a certain period (expiry time) to select a call or a put option, respectively. If the prediction goes right, traders will receive a payout (in percentage) and if it goes wrong, they will lose their deposit money. There are 2 choices and 2 possible outcomes, as it’s called binary options.
30-Second Binary Options
Binary options trading attracts a large number of investors thanks to its simplicity and high potential profit. Besides, traders can know exactly how much they can gain or lose before placing the order, thus, it helps them control trades better. Nonetheless, despite the probability is 50:50, a failed decision can wipe out all deposits. As such, binary options trading is considered risky for all levels of traders.
In terms of contract time, a broker like FiNMAXBO offers a wide range of periods which can last for 6 months in the longest. On the other hand, traders can challenge themselves in super short contracts, say 30 seconds. This expiry time allows traders to make many small orders, thus, quickly generate and accumulate profits; yet, it contains an extreme risk as time goes twice faster. The approach is quite similar to that of the 60 seconds but since the period is just half of a minute, traders must have quick decision making and strict risk management.
30-Second Trading Strategy
In such a short term like 30 seconds, there is nothing much that market trend can help as the time flies too fast for the price to form a full direction. However, it doesn’t mean that lagging indicators are completely helpless here. Traders can still use the moving average but in exponential form to look for support or resistance levels and range. They are also the area we should make our decision.
Next, traders should make use of oscillators to detect the shift in the price movement. For this purpose, RSI, Stochastic or Stochastic RSI are ideal choices as they are sensitive enough to the market’s sentiment. For example, in a perfect trading setup, when you notice the asset’s price crosses the resistance/support level and your oscillator confirms that it went to the overbought/oversold area, you place a put/call option, expecting the price bounce back.
In another scenario, if you want to trade following the trend, try taking advantage of momentum indicators like Parabolic SAR or ADI as they indicate the prolonging of a trend. Besides, you also consider following the overall trend to reduce the risk. If the overall trend and the momentum indicators show the movements in the same direction, you place your order correspondingly.
As the expiry time is just like a blink of an eye and the number of the order is normally high, trading binary options in 30 seconds may be very intense. Therefore, to avoid drowning in stress and revenging trades, traders must have strict risk management.
First, they should determine how much money they are willing to trade in a day. Next, the deposit money for each order should be well distributed. Normally, traders are advised not to go beyond 5% of their balance for each deal. Since there are many trades made and several or many of them may end up in a loss, fund distribution is crucial.
You have already finished your day trading goal, haven’t you? Stop trading. You have faced consecutive losses today, haven’t you? Stop trading. Your account needs to survive to trade in another day. So don’t force yourself to over trade and stick with your plan.
Binary Options Trading Strategy Offered by FiNMAXBO
If everything is still too complex for you or you just don’t know where to start, don’t worry for FiNMAXBO analysts are always here for you. The 30-second period is short, simple but also very risky, and requires good skills to make profits. Therefore, it is a wise choice to join coaching sessions and discuss your strategy with senior analysts. They will help you develop a proper strategy to trade effectively. And if you already have your signature tactics, FiNMAXBO team is happy to help you optimize them to make the most out of every trade.
Last but not least, though the 30-second period is the shortest one in binary options trading, you should still engage it with a long-termed approach. It isn’t how much you can make in a trade but how much percentage you can gain consistently.