If you take the step to trade in binary options, you can, of course, buy options indiscriminately, but you can also invest with a strategy.
There are several binary options strategies available online and one of them is the M5 strategy. In order to give you an
idea of how you can act strategically, we will explain in this post how you will be able to use this strategy.
That its use is simple when investing in binary options? This will soon become apparent because you simply only need to predict which course a certain option will follow.
What can you achieve with the strategy? A better chance to ultimately achieve a profit with your investments.
Contents
Make sure you recognize trends
To be able to use the M5 strategy correctly, you need to have knowledge of the M5 chart. This means the 5-minute chart you can easily bring forward at your broker.
Each point that you can find in the chart represents a period of 5 consecutive minutes. Of course, using this graph is only interesting to follow the short-term trends of binary options.
Before you open the chart, it is important to make a choice regarding an underlying asset. This can be an index, for example, but also a share that you would like to invest in.
Then look at the price evolution of the previous hours, because it will always fluctuate. Thanks to the possibility to look at it for a longer period of time, it becomes easy to recognize an average trend and on this basis to buy any binary options.
What actions you should take
Now that you’ve got acquainted with the basics of the 5-minute graphs at online brokers, it’s time to learn what you can do in certain situations.
If the trend increases at a certain point in time, it is very likely that it will increase in value for the time being. It is best to choose a Call option at that time.
On the other hand, is the trend present in a downward trend? Then it is best to choose a Put option.
This is to benefit from a further decline. Is there not a clear trend to recognise due to too much fluctuation? Then a prediction is impossible and it is best not to buy a binary option. It is best to focus on another value where a trend can be recognised.
Diversification of risks
A tip we definitely want to give you is that it is best to buy multiple binary options.
This spreads the risk of losing money and allows you to make profits from your investments even on the basis of multiple trends.
The best way to do this is to look for a piece or 5-course charts that show clear trends. These must not only be shares like KPN’s, for example but may also be issued on the basis of a currency pair.
A good example is a buyer like the USD/EUR or the USD/JPY.
Investing with the M5 strategy
There are online several brokers to find where you could buy binary options with the
5-minute strategy.
For example, we are a big fan of Olymp Trade. There, as an investor, you can easily find a strategy with a 5-minute deadline to find a trend. Moreover, do you not yet have your own investor account with Olymp Trade?
Then it is highly recommended to create one. You can then start immediately with a 100% bonus and get extra money available on the basis of your own deposit to trade with.
Visit Olymp Trade and make direct use of the 100% binary option bonus!
DISCLAIMER: Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains.
If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.
All trading strategies are used at your own risk.