At a base level, super-short expiry period trades are designed to attract digital options traders who crave excitement, fast action, and quick profits. This strategy is for those who like to trade quickly and feel comfortable with accumulating smaller profit amounts on each trade, while still managing to build account funds quickly via an increased trade volume. This strategy is simple enough for use by novice traders.
This strategy has roots in the Forex marketplace, as many binary options strategies do. The strategy is based on short-term trades and small price movements. This method has been around for several years, but just recently gained popularity among traders. This strategy is often used along with currency pairs, but could be used along with any underlying asset. Also, within the Mayfair Options platform, this strategy could be applied using the 30 or 120 second expiry time periods and not just the 60 second expiry.
The goal with this strategy is to use lower investment amounts together with low risk trades so as to lock in some amount of profit. Lower risk trade often yield smaller profit amounts, but this is not a problem when you’re trading in high volume. With short expiry periods, traders can fire off a large number of trades in a short period of time. Digital Options allows investors to use $5 minimum investment amounts on such trades, a fact which pairs perfectly with this strategy.
To use this strategy, simply locate assets that have their price trending either up or down. Select your trading position according to the trend, PUT for a downward trend, CALL for an upward trend. Next, select one of the available short expiry times, either 30, 60, or 120 seconds and enter into your trade using one of the lower investment amounts. Continue entering into new trades for as long as market conditions remain in your favor. Should the asset price begin to move up and down too much, consider moving on to another asset that is offering more predictable price movement.
When you use this method and have completed your analysis, you should have substantially more trades finishing in the money than out of the money. If this is not the case, something is amiss and your approach to trading likely requires some adjustment. If you’re not winning over half of your trades while using this strategy, you’re losing money and need to quit trading and make the necessary corrections.
This is just one of several digital options strategies that prompts you to increase your trade volume while using smaller investment amounts. Many traders feel that this is a much safer strategy than trying to earn large amounts by taking chances with a lesser number of trades and higher investment amount. Sometimes it is important to remember that any profit is good profit, and that how you work towards your profit goals isn’t as important as getting there.