Knowledge is Power: One-Minute Trading and Binary Options

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

Binary options only have one or two specific outcomes - an all-or-none result wherein the trader loses or wins a specific amount of money based on his investment. For example, if a trading firm offers an eighty one percent return on an investment of one hundred dollars, there are only two possible results for the trade: either there is a win of one hundred eighty dollars, an ‘in the money' win, or a loss with a return of fifteen dollars, known as an ‘out of money' loss. There is a pegged amount of return in case of a loss because the system allows for protection that is typically between ten to fifteen percent of the trader's initial investment.

Knowledge is power. Politically and economically influential news affects markets by causing their prices to swing in dramatic extremes. This is generally a welcome development for traders who prefer markets that are fast moving, because it has the potential for making a large profit. On the other hand, it is also extremely risky as well, if your money is potentially on the losing side of a trade at any given time. You may have to fight your way out, so to speak, if it is losing trying to escape with a small loss or a square result, this can be such a tricky situation. There is also risk even if you are ‘in the money' because it is also difficult to identify a good exit point to close the trade out with a decent return.

With binary options, these two potential problems are removed, because your potential loss as well as your potential gains are already set and agreed upon even prior to commencing your trading session. For one-minute traders, this is a relief because a lot of uncertainty in the trade is eliminated. If the trader is good at detecting a short term trend or a large potential swing in a single direction for a number of minutes, then binary options turns into a powerful trading tool.

One-minute trading with binary options is also excellent for technical analysts and news traders who thrive on one-minute and other short term charts. Candlestick analysts who also operate on short term charts can also benefit from this trading opportunity. Because a lot of spread betting companies do not usually provide charts that contain enough detail for one-minute trading, scalpers usually have to contend themselves with normal five minute or fifteen minute charts.

Binary options as well as traditional one-minute trading using FX or gold, do have risks involved, just as most other trading or speculation methods do. However, one-minute trading is especially ideal as a trading approach, (for those who have developed the right discipline and patience) to create regular profits from the approach.

Add to this the excitement and adrenaline involved in one-minute trading and FX suddenly becomes both exhilarating and financially rewarding. One-minute trading also has the advantage of increased frequency, as you are able to trade multiple times a day.

Like all trading strategies, one-minute trading needs to be planned well, and proficiency and patience cannot be overemphasized as well. Know your limits as a trader: how much are you willing to risk? The money you invest or bet should be expendable resources and you must be psychologically prepared to take the brunt of a loss. On the other hand, satisfying rewards await those who plan and execute their trade masterfully, and stick at it.


To know more pls visit complete trading strategy

 

Article Rating (5 stars):
  • article full star
  • article full star
  • article full star
  • article full star
  • article full star
Rate this Article:
  • Article Word Count: 577
  • |
  • Total Views: 33
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
>