6 Opinions, 60 Seconds – Expert Traders on 60 Seconds Options
60 Seconds Options – What the Experts have to Say
It’s no secret that 60 Seconds trading has become very trendy these days. More and more traders, existing traders and newbies have begun trading 60 Seconds options, using this very short time frame as an opportunity to generate high profits. BinaryOptionsthatSuck.com have asked six top traders to share their thoughts on 60 Seconds trading with our trading community, yet, the ultimate questions remain unsolved – Goldmine or Landmine?
1. Martin K – Chief Editor Bots.com
Winner or Loser?
First, proper disclosure. I’ve a colleague who works for a certain Binary Options Broker as an account manager. I’ve asked him many times – “So what’s the deal with 60 Seconds?” Is it possible to determine the direction of a certain asset over the next 60 seconds? His answer, each time, was firm and grounded: If you spend enough time staring at your screen, monitoring the charts, biting your nails and cursing for every loss – you’ll get it. Yes, it might not be considered very scientific, but with the right intuition and enough coffee, you can reach 70%+ success rate. It’ll take time, money and much effort, but if you’re skilled enough, you can get the edge. 60 Seconds options are possible. Nevertheless, without proper experience and nerves of steel, you could lose a lot of money, quickly. That’s just how Binary Options are – Some people win, some lose. That’s the world we’re living in, which side are you on?
For me, it’s a bit difficult to put my finger on the exact differences between trading and gambling. In so many ways trading and gambling are similar, as long as the future is unknown, it’s impossible to know what will happen next. Whenever the markets crash, something my fellow traders and I have seen occurring more than a couple of times over the past 10 years, the non-traders call us gamblers. They blame us for speculating on the future like gamblers do, but then again, maybe it’s because most gamblers find it very hard to describe themselves as one, even if they are “just” traders. For the same reason, I’m having a hard time saying that 60 Seconds traders are gamblers, like some people say. I also can’t say that 60 Seconds trading is indeed 100% pure gambling. Nevertheless, I don’t believe that predicting the expiry value of an asset over the next 60 seconds is possible, unless you have some inside information on something that’s going to occur in the next one minute.
60 Seconds trading is fun, exciting and pure adrenaline. No one can deny the rush when they hit the call/put button. The next 60 seconds are as thrilling as pushing the gas handles on your brand new Kawasaki Ninja. But it’s not trading. I recommend sticking to longer time frames. And whenever you feel the rush, and only after you have made some profits – hit the Call button and wait. It’s only one minute.
Oh, and one more thing. Don’t mistake 60 Seconds options with 60 Second profit systems. 60 Seconds trading refers to buying an option which will expire within one minute of the second it was purchased. 60 Seconds profit systems are 60 Seconds based strategies, some suck and some don’t, but be minded that they are just strategies, not the actual option purchasing. There are more than one 60 Seconds options strategies. You can find more information about these strategies on our Forum and on the Strategy Reviews section.
2. Bogdan G – Both sides of a Flipping Coin
Why 60 Seconds Options Trading Doesn’t Suck
Sometimes trading can get really stressful for a person and all that stress must be relieved somehow. Some of us like to go fishing, play a game or go for a walk. All are great ways to relieve stress, but I’ve actually read a study that states that the best stress relieving activities are those within a short period of time until the outcome is known and the results are also very clear… hmm, now that makes me think of 60 Seconds trading and that sometimes it’s good just to place a trade and not really care about the outcome, because it’s just for fun and it’s thrilling to do on top of that. Looking at it this way, Binary 60 Seconds Options trading makes some sense, but only as long as you don’t consider it your main way of trading… in my opinion.
Why 60 Seconds Options Does Suck
“Money… now… money… I’m going to be rich… today!” This is how I picture a trader that uses 60 Seconds as the expiry time. I apologize for using the word “trader” because in fact they are just gamblers dressing themselves up as traders. Let me tell you something, I sometimes cannot draw a proper trend line in 60 seconds. I am simply not skilled enough as a trader to consistently be right about where the price will be in the next minute. What makes a good trader – consistency – right? Some 60 Seconds traders might get lucky and win once in a while, but I challenge anyone who reads this article to show me a detailed account statement with consistent profits from 60 Seconds trading. Challenge accepted?
3. T. Allen – Adopting a Proffesional Approach
The prospect of earning as much as 80% of your investment in a minute is certainly exciting and a definite adrenaline rush. However, is such thinking really viable or just plain folly? The first vital point to remember is that you need to achieve a success rate of 60% to produce a profit. This is because you will win 75%-80% when in-the-money, but lose 85%-90% when out-of-the-money.
This factor implies that you cannot simply rely on luck, but need a strategy to help you to secure consistent profits. However, the quality of the statistics produced by the one-minute time frame is very poor. Technical indicators are also not reliable with this period because they are analyzing just pure noise. Many scalping strategies have failed because of these reasons.
So, is 60 Second trading just wishful thinking? Well, all may not be lost since price action could be used to save the day. This is because the one minute timeframe provides a good method of monitoring trading momentum. For example, imagine that the average size of the previous twenty candlesticks is 40 pips. If the current timeframe now produces a 50 pip action, then this could be used as a good signal to open a Binary Option.
Here is a second idea. The following MT4 formula calculates the highest value of consecutive bars: Val = High [highest (NULL, PERIOD_M1, MODE_HIGH, 25, 1)]. A clean break above Val could provide another viable triggering source.
In summary, I strongly advise against gambling mindlessly using the 60 Second timeframe despite its lure of quick riches. This is because the chances of hitting a 60% return consistently are stacked against you. However, if instead you adopt a professional approach, then this type of trading is definitely not without merit. Always remember that you will need to perform extensive evaluation and testing to confirm the validity of any 60 Second strategy that interests you.
4. Richard Cox – More Gambling than Trading
With 60 Second options becoming more and more popular, many new traders are asking about the profit potential that can be seen with these short term options trades. But the reality can be seen when talking to more experienced traders, as this is a trading time frame that is rarely, if ever, used to make consistent profits. The problem, of course, is that minor time frames are much more difficult to forecast (more unpredictable) than longer term forecasts.
Looking at historical price data, it quickly becomes obvious that trend activity tends to be much more stable when looking at longer term time frames. This is largely because fundamental factors are in control (rather than technical levels and individual order flows). Real economic factors almost always trump technical levels and order flow activity, and this becomes even more of a hard and fast rule when dealing with longer term time frames.
For these reasons, 60 Second option trades should be viewed more as a gambling activity than a trading activity. There is nothing wrong with gambling in and of itself, but it is important for new traders to realize there are significant differences between the two activities. Trading requires you to isolate high probability opportunities, while gambling does not and allows you to “throw caution to the wind”. There is very little in the way of strategy that allows traders to isolate higher probabilities on time frames less than 5 minutes. When dealing with time levels below this mark, you are essentially flipping a coin, as there is no way to turn the odds in your favor in a substantive way. Keep this in mind when considering a trade in 60 Second options.
5. Graham Ingokho – 60 Second Binary Options: Sink or Swim
Not many people recall their first swimming class with excitement. That’s because they probably drank more than their share of chlorinated water! After the experience, it is not a surprise that many don’t return to the pool apart from the incessant coercion from their guardians. Good things take time to perfect, and so does options trading.
Many traders begin their trading experience with high expectations that the market will always reward them handsomely. But most soon realize that the market is an unpredictable sea with sudden twists and turns.
Let’s cut to the chase! If you are just wetting your feet in binary trading options, don’t trade in the 60 Seconds time frame. Yes, you could get lucky, a couple of times, but I am sure you will never want to base your trading on luck.
You must first understand what drives the market (fundamentals) and where the market was before, just in case it goes there again – which it will (technicals). The easiest way to walk in and out of Binary Options trading is to choose a scheme that leads you into a streak of losses so that you give up.
However, in case you have been trading for a while, then you can always try your hand at the 60 Seconds time frame. Why? Because at least you can read the charts and more specifically, identify moments of extraordinary opportunity and take them in the short time frame they are available.
6. Michael Hodges – Only the Brokers are Getting Richer
I think that the new 60 Second options really suck. They are the new fastest way to lose your money in the markets. The tight time frame is for thrill seekers and trade junkies who have nothing better to do than throw their money away. Even in a raging bull or bear market prices fluctuate enough to make 60 second positions incredibly risky. Short term trading can still be done with regular Binary Options; I make several trades a week where I wait until 10-15 minutes before expiration to buy. 60 Second options are going to make the option brokers rich. The only good thing about 60 Second options, and I mean something that really sets it apart from other time-frames, is that there will always be an expiration just a minute away.
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