60 sec Vs Longer term

Hi,
I have been reading (and hopefully learning) about binary options for about 6-8 months.
First i wanted to make sure it wasn't a scam. Too many slick productions lead me to belive it was.
Then i found verious forums and learned in a field with many scammers there are still SOME reputable brokers out there.
So i bite the bullet and opened a demo account with 24Option.
They appointed me with an account manager and he started to teach me basics.
I use Netdania for charts (free).
Started with Bollinger Bands then RSI.
He mentioned MACD but i never got my head around it.
Anyway, I traded the lowest amount and started to get consistent £150 to £220 return per day (Demo Account).
I was taught to use the Martingale Strategy.
That Account Manager left and i was assigned another.
I have now made around 120 trades with my live account. And have a success rate of 52%.
I know we don't like to admit it but emotions come into it and Live accounts are not the same as Demo.
Plus i was a bit more aggressive with my Live account.
Anyway.
Im here to ask. What would a realistic success rate be? I think 65-70%. To make a healthy profit.
I understood that i most likely would loose a bit of money. But gain lots of experience. Thats why i traded my live account.

Would you trade 60 sec or 5 mins?
I want to move to 5min but need to look at a few good strategys
Any suggestions?

Any help would be greatly appreciated.

Comments

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    60sec trading should not be attempted by Newbies imo stick to higher TFs...
  • BO_n00bBO_n00b Posts: 6
    Appreciate the reply.
    What time frame would you suggest?
    Also am I correct In understanding the technical analysis is the same.
    BTW my Bollinger Band settings are:
    Average: 20
    Standard Deviation: 2 and 3
    and RSI setting: Period 3 with lines at 10 and 90.
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    edited December 2015
    Seems a very logical starting point... The next is to understand "Price Action" and that is a long journey ahead. Best book on it is below, just note its over 100 years old but explains the concepts more exact then any book I have ever come across to date outside of reading "Sun Tzu's Art of War"

    image

    Book is free FYI ---> https://archive.org/details/studiesintaperea00wyckrich <---
  • Trader4LifeTrader4Life Posts: 6
    Personally I dove really deep into technical analysis and it has helped my trading win rate improve. A book that helped me was Technical Analysis for Dummies by Barbara Rockefeller and Charting Made Easy by John J. Murphy (just do a Google search and you can find them, both under $20 so they won't break the bank).

    Personally I'd avoid anything that ever has the word "guaranteed" + "results" in the same sentence. Don't buy into any guru deals, but in my opinion I think gaining market knowledge is very important. In the end, knowledge is power.

    image

    (had to include this just in case anyone recognizes "knowledge is power" from the funny Tai Lopez YouTube ads) ;)
    Matthew White | Trader4.Life Founder | [email protected]
  • BO_n00b said:

    Hi,
    I have been reading (and hopefully learning) about binary options for about 6-8 months.
    First i wanted to make sure it wasn't a scam. Too many slick productions lead me to belive it was.
    Then i found verious forums and learned in a field with many scammers there are still SOME reputable brokers out there.
    So i bite the bullet and opened a demo account with 24Option.
    They appointed me with an account manager and he started to teach me basics.
    I use Netdania for charts (free).
    Started with Bollinger Bands then RSI.
    He mentioned MACD but i never got my head around it.
    Anyway, I traded the lowest amount and started to get consistent £150 to £220 return per day (Demo Account).
    I was taught to use the Martingale Strategy.
    That Account Manager left and i was assigned another.
    I have now made around 120 trades with my live account. And have a success rate of 52%.
    I know we don't like to admit it but emotions come into it and Live accounts are not the same as Demo.
    Plus i was a bit more aggressive with my Live account.
    Anyway.
    Im here to ask. What would a realistic success rate be?

    I think 65-70%. To make a healthy profit.
    I understood that i most likely would loose a bit of money. But gain lots of experience. Thats why i traded my live account.

    Would you trade 60 sec or 5 mins?
    I want to move to 5min but need to look at a few good strategys
    Any suggestions?

    Any help would be greatly appreciated.

    1. A good success rate is anything that is Net profitable. In my opinion a realistic goal is probably 60 - 72% understanding the chance of 5% margin of error or emotions.

    2. Longer time frames are going to be better for most people starting out IMO for several reasons. So I have to Agree with LOB
    I think the hardest part of trading smaller time frames is managing your frequency because a trade will be over faster and so you trade more
    doing this ups the resolution needed to be accurate on that time frame. If you can get the numbers down with rules,filters or whatever it gets better
    but longer time frames probably best.

    EOD ( End of day 1-3 trades )
    End of hour ( 1-3 or 5 tops ) a day
    15M same numbers
    5M 3 tops
    NOTE: For end of hour look on this board for Okane's video about timing inside the hour.
    This is not gospel but it is the first step in factoring time into your trades. Learning time based trading
    is the most powerful thing you can do right now IMO given the markets current state of Algo-mania.

    Negative Martingales are only worth taking 1 after a loss again IMO. Positive progressions are better
    when you can put them with a bit of price action,TA or statistics so you can spot stronger setups and get the progressions to work.

    ( This is a video I done for a simple tool that might get you started conceptually )

    Lots of info out there just keep doing what you are doing learning more each day and developing your skill via application.
  • dear123dear123 Posts: 83

    60sec trading should not be attempted by Newbies imo stick to higher TFs...

    I have tried 60 sec personaly and I found that its merely a suicide, trading on 2 mins strategy is far better than 60 I guess.

  • The_Geek_MHThe_Geek_MH Posts: 544 mod
    60 seconds sucks, just have to throw that in there, I would suggest you use at least 5 minute charts, if not 30 or 60 minute charts as a newbie... those short term signals are unreliable, hard to spot and must be taken immediately for any hope of success...
  • BO_n00bBO_n00b Posts: 6
    Thanks for the comments.
    Have moved to 5 min.
    Think i have a good strategy in place now. And my ITM is going up too.
    Current ITM is 72%. I have only made 10 or so trades with it so need a bigger sample size. It most likely will go down a bit.
  • Swede62Swede62 Posts: 2
    I feel really good about being here among other traders as I'm not yet a trader, just thinking about it and seeking knowledge. This single thread stating 60 second trades is bad for newbies is valuable coming from experienced traders. Thank you for the first in what I'm certain will be a multiple level learning experience.
  • john89oningjohn89oning Posts: 15
    edited January 2016

    60 seconds sucks, just have to throw that in there, I would suggest you use at least 5 minute charts, if not 30 or 60 minute charts as a newbie... those short term signals are unreliable, hard to spot and must be taken immediately for any hope of success...

    I totaly agree. When you are a newbie (and not just newbie, even I as a trader that is couple of years in it), should not do a trade using 60 sec. You have to spot them on time and risk that it might work. Maybe it would be easier by time to spot them and make a better decision but, practise is the most important and if you want secure trade, I would not recommend longer term charts. I use http://www.binaryoptions.net/brokers/stockpair/ and you can check out charts on their site and practice. If it works for you then great!
  • dear123dear123 Posts: 83
    60 sec trading in binary options is no doubt risky however I have found a good article defining 60 sec trading strategy, hope it will helps learning how to trade using 60 sec strategy.

    http://www.freebinaryoptionscharts.com/strategy/60-seconds-binary-options-strategy/
  • toby1977toby1977 Posts: 7
    60 sec is really complicated if you are at the beginning.. i still prefer long term expiries by which I can make predictions more confidently
  • arbtraderarbtrader Posts: 5
    If break even on your average trade is in the upper 50 range then anything above that would be net positive = profitable. I would think you would keep going as long as you were profitable and through exponential money management with geometric progression = Power of 2 keep growing like a snowball does as it rolls down a hill...
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