Trading binary options in South Africa usually seems daunting at first to the beginners. The entire rules, strategies, technical analysis and other elements included in trading normally seem difficult and confusing. So, if you are in such situation, the good way to begin your journey on binary options market is a 5 minute trading strategy.
In fact, if you are planning to invest online for the first time you need to go for 5 minute trading strategy as it might be a way that will increase your chance of profit. You are going to get better understanding of the preliminary technical indicators which you need in order to increase your chance of making profit.
Hence, it is the strategy designed for easy introduction of the platform for beginner traders on binary market.
Another excellent thing you need to know about the 5 minute trading strategy is that it gives traders opportunity to maximize their transactions in each section. The analysis required in the trade is expected to be carried out by trader in one minute chart while the execution is carried out within 5 minutes.
That is why it is called the 5 minute trading strategy.
Maximize Your Profit through 5 Minute Trading Strategy
The truth is that you need to maximize your profit while trading with 5 minute trading strategy.
Make sure you find out the most suitable platform where this strategy will be applicable so as to increase your level of profitability. But, there are many trading platforms and systems in South Africa that you can easily utilize when you are operating with 5 minutes trading strategy.
Since you are just a beginner in binary options trading you can try out automated trading tools which are offered online for free to all traders. There are many more platforms through which you can maximize your trading profit but you have to research online to find them out. South African traders do not have to bother as there are lots of available platforms for them.
How 5 Minutes Trading Strategy Works
Now as a beginner in binary options trading you may be asking about how the strategy works?
5 Minute Trading Strategy requires two basic tools to work effectively and yield good results. These two requirements are charts and oscillator.
The chart usually shows movement of stock price as well as your own trade. The oscillator works alongside the chart displaying the visual progress representation, increase and decrease of underlying stock from the first minute to the fifth minute.
So, these are the ways 5 minute trading strategy works and you need to understand it in order to increase your chance of making profit in your trade on any platform and trading system you selected.
The Three Steps You Need To Take In 5 Minutes Trading Strategy
After understanding how 5 minute trading strategy works on binary market, you need to understand the steps involved in making use of this special and unique strategy. You must be able to complete the three simple steps involved in this trading strategy in order to stand chance of maximizing your trading profit.
The first thing you need to do while trading using this 5 minute trading strategy is to select the particular asset you would want to trade with. In this step you need to select only the asset you have knowledge about the price movement or the market trend.
The second step after selecting the assets you would like to trade is to go on the internet to choose your preferred charting system.
After that the third step is to make use of open-high-to-low-close bars already available in 5 minutes chart. Each of the bars has period of 5 minutes, and after the completion of five minutes, the bars will indicate whether there is increase or decrease in price of the asset for you to either Call or Put in your binary option trading.
Reduce Your Trading Risk
The truth is that there is still some element of risk associated with your trade even when you use 5 minutes trading strategy. So, you must look for a way to reduce your risk level so as to maximize your trading profit.
Depending on the indication on the bar, you will decide whether to go on the Call option or Put. The Call option means that you are predicting the price of the underlying assets to be above set strike price within the expiry time. You can also buy Put option which simply means the opposite of the Call option.
You must be very careful not to make mistake while deciding whether to go for call option or put option as that will determine your profit or loss in the trade.
Some Rules to Profitable 5 Minute Trading Strategy
There are some certain rules that guide 5 minute trading strategy which you need to be mindful of before going ahead to trade with real money using the strategy. In general, you should only select the asset you are sure of the price movement and the market trend.
Also, ensure that you confirm the reliability and trustworthiness of the broker you want to contact for binary options trading using this short term strategy. This is because your success through 5 minute trading strategy partly depends on your broker or the platform where you registered for an account.
Make sure that you find out more about the broker you are contacting or you want to open account with. Make sure that your trading account is opened with a legit broker on safe trading platform.
Also, make sure the platform you want to select for 5 Minute binary option trading strategy support such kind of trading and also accept traders from South Africa. These and more will help you enjoy profitable binary options trading journey.