Secrets of Trading Turbo Options
Your capital may be at risk. This material is not an investment advice.
Turbo options is a type of binary options with a short, limited term. Binary options traded on 1 to 5 minute timeframes can be considered turbo options. Traders who prefer dealing with turbo options are called scalpers.
Scalpers are traders who do quick, instant deals with a small amount of target income. These deals (known as strokes) are accurate, fast, and flat (in terms of profits) like a scalpel cut (although in some literature their workflow is compared to “scalping alive”).
The precise definitions of who scalpers are may differ. But one thing is certain – scalpers are the elite of the market.
Yet in one thing market insiders are aligned: scalping is a popular way of trading and it is suitable for traders with small amount of operating capital.
You may include yourself among scalpers if you work with options that have a short performance expiration time (not less than one minute).
Before we start to describe the most popular strategies for trading turbo options, we should note the specificity of such trading. Not without reason, scalpers are marked as a special segment of market. This group must contend with fairly tough natural selection in the market, because “a slow trader is a dead trader,” as they often say.
That is why before you begin trading turbo options, please read the requirements and advice for traders who have decided to dive into the world of high-speed deals and dizzy trading sessions.
Benefits of trading turbo options
- First, there is no difference between those who trade turbo options and pips-traders (another name for scalpers, as they chase profits equal to a few pips).
You even have a couple of advantages. Let’s take a look.
You would be probably surprised to find that on specialized sites, where scalpers post their results, you can see not only the average profit per deal parameter, but also a the average time within a position. Remember the scalper’s golden rule: one can not “outsit” and must close the deal after some amount of time, despite the current result.So there you have the first advantage – you are automatically limited in terms of deal time.
- The second advantage is the fact that scalpers spend less than 70% on commissions to brokers and stock. Of course there are different kinds of limitless rates and conditions, but they all are bound to turnover (and not otherwise), so a beginner trader would be wise to master them first.
You know your profit in percent before the deal ends, and you will not pay any more.
- The third advantage is the terminal. As a scalper you have a handy terminal so that you spend less time on deal completion and focus more on closing deals. With a regular trading terminal you have to set access properties in order to manage orders by yourself.
Usually scalpers purchase expensive specialized software to get around this. But with IQ Option it is very easy to manage these quick deals: just specify the timeframe and choose the direction, and you’re done.
Economic calendar
Daily monitoring of the economic calendar of upcoming and current events. As we trade options we have a great competitive advantage among ordinary scalpers with this information–trading “on the news.” Scalpers can’t do that: small income per deal does not allow traders to prepare for big events; a volatility leap always occurs by the time news stories are announced, and deviation from average prices can be very high. As usual, movement occurs bilaterally and breaks stops. That is why scalpers don’t trade on the news.
The calendar is needed in trading turbo options because it provides a forecast of what events are to occur. For example, the market can be inactive due to holidays, or the upcoming event can be so valuable that markets beforehand will trade with a low activity rate (consolidate).
Intensive movements should not knock you off balance – it is essential to be well informed of the reasons for these movements.
90% of traders dealing with turbo options don’t follow these rules. Later on they become surprised about why their deposits simply vanish within days, like a “donation” to the market.
Risk management in trading turbo options
There is another important hint that nobody mentions. The lower your trading timeframe is, the higher the risk and lower the profitability. Scalpers gain profit from high turnover. It is thought that if 6 in 10 deals are profitable this is a very good result. You simply have no room for mistakes if you have such a low quantity of profitable deals.
Money management. “I just learned this strategy and my money disappeared.” You might see a complaint like this on trading forums online. Make up your mind – did you enter the market to make or to spend money? If you want to make money, then show patience and awareness. Wars are won not just by warlords with their brilliant strategies–victory requires the support of reliable resources. Save your resources. Trust us, if your business improves thanks to scalper strategy, you will quickly build up your deposit. Don’t dare think, “If I increase investments, I will earn more.” Remember, greed bears poverty. Trade minimal sums and have a 10-time margin on your deposit. Make your number of losses not more than 3, with 5 as an absolute maximum, per session. Implement the notion of “stop-trading” is a specific number of losses is reached per day and per week. Always use strategy testers before making deals in the real market.
Training. As psychological preparation with this style of trading, step-by-step training is highly recommended. Take historical data and, without watching the forecast, slowly scroll through the chart manually with a single step equal to one candlestick, make careful decisions, write down your losses, scrutinize the chart attentively, and fixate on profit in your head just to know that it exists. The goal, readiness for different situations that may arise during your trading, is vital.
