Binary options are prohibited in the European Economic Area. Between 74-89 % of retail investor accounts lose money when trading CFDs.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best 5 Minute Trading Strategy

Best 5 Minute Trading Strategy

Taking beginning steps in trading binary options certainly does not seem like an easy or simple task. The knowledge and expertise needed to successfully participate in binary options trading is not easily acquired. Seeing that, for a beginner, this whole process can be extremely overwhelming, it is a smart move to make it less complicated.

One of the ways to make headway on the binary options trading market comes in the form of a 5-minute trading strategy. If you’re feeling brave and have decided that your first move is to actually invest right away, this 5-minute trading strategy could possibly be your money booster.

This strategy was built to help you increase your possibilities for making a profit on a complicated, binary market. The 5-minute trading strategy was designed to allow beginner traders to easily get accustomed to the platform they will be using while minimizing risks.

The reason this is called a 5-minute strategy is because of the fact that it allows the trader carry out the trade execution within the 5 minutes range. It is set up in a way that it allows traders to take advantage of the opportunity to potentially maximize their profit in an easy-to-use, intuitive, clear way.

Boost your profit potential through a 5 Minute Trading Strategy

It is pretty clear that, when you decide to start trading with binary options, your goal is to maximize your profit and minimize your loses. In order to make sure everything goes according to your plan, you need to take care of your primary step in the right direction. That step is finding adequate, most suitable platform where you will be able to use a 5-minute strategy.

Not all platforms are great for this strategy type so make sure that your chosen platform will be able to make use of a 5-minute strategy and consequently maximize your profit potential.

Another great idea is trying out automated trading tools. Most of those tools are free of charge and can be an amazing way to start trading and making sure your inexperience doesn’t work against you.

How does the 5 Minutes Trading Strategy work?

After taking you through the points explaining how you may benefit from the 5-minute trading strategy, it might be a good idea to explain how does this strategy work.

There are a couple of necessary tools that are incorporated into a 5-minute strategy and are essential for its efficacy. Those are, namely, a chart and an oscillator.

What are Charts and Oscillators and why should you know about them?

Charts are usually used to display movement of the stock price, but it also shows information about your own current trade. The oscillator, on the other hand, offers a visual portrayal of the progression of the underlying stock. The representation progresses from the first minute to the fifth.

It is of the utmost importance that you, as a trader, understand these tools and their role in the 5-minute trading strategy. That way you can be sure you have done everything to increase your chances of making a profit and, equally important, boosting your chances to maximize that potential profit. Make sure you select the adequate platform and trading tools and you should be well on your way to success in binary options trading.

5 Minutes Trading Strategy essential steps

Now that we have explained how this effective strategy works and what are its main components, we need to explain the steps involved in making it efficient.

The steps that follow are crucial in order to make this strategy work on the binary options market.

In order to actually use this strategy as it was intended, you would need to first select the underlying asset you want to trade with. Make sure that the asset you select is not unknown to you, and that you have done enough research to be able to conclude in which direction its price will move.

The next step involves the selection of a charting system, which will be one of your main ingredients in making a potentially successful trade.

The final step is making sure you are actively using open-high-to-low-close bars. These bars are readily available in the 5 minutes chart. What makes these bars so important is the information you can get from them. Each bar has a 5-minute mark and after it expires, those bars are going to show you the progression of your assets price.

This gives you the information on which you can then decide whether to Call or Put in your binary options trading platform.

Minimizing Binary Options Trading risks

One of the most important things to remember when going through necessary steps for successful binary trading strategies is that it does not come without risk.

Like in any other type of trading, your main goal needs to be maximizing your profit potential and simultaneously minimizing trading risk level. What exactly does that mean and how can you do it?

This is the part where your bar indicators come in handy. The bars are giving you a visual representation of your trade’s movement. Depending on their direction, you will then decide what move are you going to make.

You can choose the Call option if your bar indicators show that your underlying asset price might be above the strike price at a given moment, within the expiry time. You can also choose the Put option which means you believe your assets price will be below the strike price.

Minimizing risk means that you need to take into account all the available information that your trading tools and your chosen trading strategies are offering. After collecting information, you are then able to make an informed decision.

Increasing success with a 5 Minute Trading Strategy

Just like with any other trading strategy, there are certain things you need to take into considerations before you decide to invest real money.

When starting out with the 5-minute trading strategy, or any other, make sure you really familiarize yourself with your selected asset. Be informed about the market trends as they can be a great suggestion on price movement.

Another factor that clearly has an impact on the success of your binary trading is definitely your chosen broker. You need to know how reliable your broker is. Make sure that your broker is regulated and legitimate.

Also, remember to choose the platforms where your trading strategy can and will be applied. Besides the obvious reasons why this is important, another one is that the broker, the platform and your chosen strategy, all have equal impact on the outcome. Understanding the combination of the three factors is what will help you achieve a more successful trading experience.