RAPID FIRE TRADING STRATEGY – How To Trade the New Binary Option 60second trades
Many of the Binary Option Brokers have introduced what they call “60 Second Trading or Speed Trading”. The concepts are all basically the same, but the rules and the trading are slightly different. iOption’s team of professional traders and Account Managers have developed this system using the “60Second” trade method on the iOption platform. It has been tested on several others and it works just as well but on some it failed miserably, not because the strategy was wrong but because their platform functioned differently.
Our advice is to try this strategy on the iOption platform, where it was developed, and then see if you can apply it to the binary option platform you use or just stick with iOption.com.
Or you can try it with your broker platform, and if you are able to complete the trades then you are cool…. If you do please drop us a note so we know how it functions elsewhere. We always want to hear from traders using our strategies so we can improve them or advance them.
Remember, trading has risks, and no system is risk free. Always make sure you can afford to risk the money that you are investing and always start out cautiously. Do not think that you did well with one or two quick investments that you should jump up and start investing thousands of dollars. Start slow, continue slowly and build.
The “Rapid Fire Trading Strategy” is based on making many quick and repeated investments in small increments, some you will lose and some you will win but at the end you would have profited by more than you would have lost so at the end of the day you “Are in the Money”.
If you start jumping up and down with the $$ value of your trades, you will end up losing in the long run, take your time and build, follow the strategy. Remember, your mind is in control not your emotions.
“In the moment of action remember the value of silence and order” – Phormio of Athens
Using “Rapid Fire” your emotions are apt to take control, as it is exciting, fun and heart racing, it’s like driving a Ferrari, but never take your eyes off the road.
If you are ready to get started, then let’s go… Get yourself a drink, grab a snack, and do whatever your need, because for the next 30 minutes you will be totally involved. “Rapid Fire” lightning fast, you will be trading at the speed of light and believe me once you start you are not going to want to stop. I do not recommend “Rapid Fire” trading for the weak hearted. If you have a heart problem, please keep your medicine CLOSE.
The concept of 60 second trading is fairly easy,
- you select an asset,
- decide if it is going to move up or down within the next minute.
- and enter a trade.
There are only 3 outcomes with binary option investing it is the same.
You can be
- “in the money” which means you were correct and have made profits,
- “at the money” which is considered a tie, and you break even or
- “out of the money” which means unfortunately you called it wrong and have a loss.
To trade using “Rapid Fire” strategy, you will hopefully have 3 “in the money” investments for each “out of the money” investment. It is all about how you enter your trades and compound them as your chosen asset is moving.
Binary Option offer numerous asset choices, www.iOption.com offers assets ranging from stocks, indices, commodities and currency (forex). This strategy works best with heavily traded assets which move in patterns or “trends”.
The choice should be one of the 8 primary currency pairs, such as the EUR/USD or the GBP/USD or the USD/JPY. You can also choose gold or crude oil, any of these works well using the “Rapid Fire” Strategy. Gold and Crude Oil are also great commodities to trade using “Rapid Fire “
The first step in the “Rapid Fire” strategy is to get yourself a list of current support and resistance levels for each of the currencies and commodities. These levels will be important when commencing your “Rapid Fire” assault. You can easily locate this information on most news or media sites. Go to www.fxempire.com and you will find these calculated for each asset. Just print them out so you are ready when you locate your trade.
“Self-control is the chief element in self-respect, and self-respect is the chief element in courage.” – Thucydides
The second step is to locate an asset that is trending, moving up or down “now”. We are not concerned with long term trends we are not concerned with the fact that the Euro is high but should drop, we are not concerned with price of oil, we are only concerned with the short term movement in the past few minutes, is the price dropping or climbing quickly. Or is the price at a point of resistance or support.
Once you have isolated a currency pair that fits our needs, you need to observe it for a few minutes, you need to decide, and how it is reacting to the lines of support and resistance and also to where the normal price is or was.
For instance, if the euro had been trading all day at 1.3250 and it jumped up to 1.3298, we know there is a point of resistance at 1.33, we also know that the price jump in just a few short minutes, will push up to a peak and then will weaken or decline. We are going to look for the euro to begin to fall, we only need it to drop a few pips. If we were earlier, we could have picked it up as it moved from the 1.3250 range up towards the 1.3298.
We know that prices do not trade in straight lines and that markets move in peaks and valleys.
Once we have watched the euro for a few minutes, if we see it approach the 1.33 level, we are going to wait to see if it is going to bounce off or push through.
“Rapid Fire” works best if it has actually pushed through. If this happens we will sit tight and wait for it to dip after breaking through.
Now that we have completed our reconnaissance and have our target in line, we have to wait for the attack signal
“If a man does not strike first, he will be the first struck” – Athenagoras of Syracuse
Once the pair, exhibits a second of weakness, we need to be ready to attack. We sit and watch waiting for the pair to start easing, as your observe you will see it move up a few pips and down a few pips and up a few pips and down a few pips. As soon as the moves down become more often or deeper, you will be ready to fire.
During the wait time, you would have click on the PUT trade button, you would have entered your dollar value and you will be waiting to click the “Start” button.
Now you will begin “Rapid Fire” making a small trade every few seconds, as the euro ticks down, on each tick you will continue to enter the PUTs, the system will allow you to enter a trade about every 2 seconds. Continue entering the trades will the euro moves down, when it ticks up, stop… FREEZE, if it does not tick right back down, farther than it was before the ticks up, you are finished.
If the euro continues to tick down again, keep repeating the “Rapid Fire” until the asset ticks up and does not tick down below the prior level within seconds.
At this point you are finished. You should have been able to successfully enter a minimum of 4 trades but should have been able to enter 10. Not all will be profitable, but the first trades by this point should be closing in the money.
The second group should also be closing in the money while the last few might close out of the money depending if there is a peak at this point or if the euro continued to cascade down.
If you entered 10 trades and 7 were successful, if each trade was 10.00 and paid our 17.50, you would have earned 122.75. You would have lost 3 trades as 10.00 each and would have netted a profit of 22.75 in just a few minutes.
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Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.comView all of FX Empire Analyst - Barry Norman's Articles