Option Trading Strategies! How to Make Money in 30 Seconds?
In the previous article, I was telling how to choose a good binary option trading strategy, and from now I start a pack of materials – each of them will be dedicated to the certain trading strategy, its essence, pros and cons. So, the first option trading strategy in my list is “Random 50”. It is the short-term trading system, which is designed for 30-second options. It will suit those traders who don’t want to trade for too long but are eager to gain their profits for a couple of hours.
1.How to Use Option Trading Strategy “Random 50”?
2.Pros of the Strategy!
3.Disadvantages of “Random 50”!
How to Use Option Trading Strategy “Random 50”?
- Firstly, register on the website of the broker, offering the opportunity to trade with Random 50 index. It’s very important, as only this financial tool provides efficient short-term trading, as authors think. So, having done the signing up and topped up your deposit, choose the matching index and make trading algorithm clear (which button to click and why). As a rule, it’s simple to trade via any broker. Everybody understands that to buy an option, one has to click on the big button “BUY”. But don’t forget that we’re talking not about short-term trading, but about ultra-short-term trading, and you have to make momentary decisions. You must think from the very beginning how you will push on the button. You must act like a president during the Cold War – always hold your hand at the red button. However, trading button is usually green. To be serious, you have to learn to react momentarily and not to mishit that very button, as once you see the entrance signal, you have just several seconds to buy the needed option.
Probably, some can wonder: “Why exactly Random 50?”. There are lots of other indices, let alone more traditional currency quotations and share rates. In fact, ticks (minimum movements) of the chart emerge every second only on this index, as on others, the chart sometimes has calms doesn’t move for a minute and longer. And considering the fact at least some movement is required for order activation, it’s reasonable to trade on this index. Besides, Random 50 doesn’t have that abrupt and big jumps, which lets you predict the movement easier and experience fewer emotions.
- After you’ve figured out with the big green button “BUY”, you need to make a forecast, and broker’s primitive online-chart is not enough for that. You are recommended to download MetaTrader terminal and open M1 and M5 chart there, i.e. a minute and 5-minute charts. At the former one, you will catch smaller movements, and at the latter – estimate the trend and build a long-term strategy. For instance, most speculators trade with trend only, and if the price falls, they don’t buy assets in any case.
- When everything is ready, start forecasting. The option trading strategy doesn’t give any certain and special rules about it – it will be up to your intuition. When you feel the price will go up – buy, when down – sell. Don’t count on big percent of profitable orders, but option trading strategy’s authors assure that with experience and time, you will acquire so-called, “traders’ instinct” and become more efficient and make right bets.
Pros of the Strategy!
- You have multiple right for a mistake, because you can’t lose too much with a one single order. As a rule, bets there are not that big, if you don’t raise them, so you can make up to 100 orders a day, without worrying of wasting deposit. And here’s the main exchange rule for beginners: sooner or later, a trader learns to gain, if they haven’t lost everything before it.
- Trading with Random 50, you develop trader’s intuition, which will help you to estimate the direction of the price of a financial tool without any indicators or figures. This skill is quite handy, especially if you trade in short terms and predict the slightest ticks at the chart.
- You get fast, momentary result with this short-term option trading strategy. You don’t have to get seated at the terminal day after day, just a couple of hours would be enough to gain profits. And if that income you have is insufficient for you, just raise the amount of the lot, and it you trader with profits, gaining will increase. Surely, don’t raise the bet in case of suffering losses, otherwise – these losses will only rise.
Disadvantages of “Random 50”!
- Firstly, intuition is a quiteself-contradictory indicator, which lets traders down very often. Remember why people lose their money at forex: because of violating trading algorithm and listening to their sixth sense. As for me, I haven’t tried to trade this way, so I can’t say for sure. But it’s very similar to an ordinary casino, as you can’t calculate, estimate and build your analysis, but just make the impulsive choice. Before trading this way, try the demo-account.
- That’s nothing to say you have little time to think of an order. You actually don’t have time. Once you feel you need to buy – react momentarily and place the matching bet, otherwise – the moment will be missed, though, it’s quite suspicious. Let alone you can just mishit the button, and instead of buying a Put option, you will buy a Call one.
I’d like to add that option trading strategy Random 50 will suit those traders who have been trading for long and have this traders’ intuition. If you are a beginner, don’t wait for high income – you are likely to suffer losses. Another advice: before starting trading, spend several hours for watching and observing the index at the short-term chart, trying to make orders inwardly. Probably, you won’t understand a thing, but your subconsciouswill remember the algorithmof rate movement, which will let your intuition work for you instead of against.