Trading five minute binaries work just as good as a two hour binary but they can create havoc for a new trader. Why? Because the new trader has many skills to learn including deciphering the charts, discipline and money management.
Here is a five minute binary that was executed this morning. The binary had a total risk of $40 and expired “In the Money” resulting in a $60 profit. Now let’s look at the differences with the five minute binaries versus a two hour binary.
Three hundred — that is the number of seconds that a new trader has in the trade. While 300 seconds may seem like a lot, when you are analyzing a chart for the first time, but going thru the steps, it is quite a short time span. Plus, the pricing premiums are jumping around like crazy. Every tick of the clock can make the binary prices change dramatically. New traders, quite often, are still trying to learn the platform and adding the pressure of a five minute binary simply creates more stress.
Additionally, most new traders are still working on a plan or method that works. Then they choose a five minute to implement what think may work. There’s really not a lot of time available for “thinking through” the trade or capturing the screenshots on entry and exit. Without this information, it is very hard for the trader to produce the documentation to gauge how well they are performing.
New traders should take advantage of the two hour binaries. Two hour binaries provide more time for a new trader to make decisions without feeling the pressure of an expiration in just a few seconds. After perfecting their timing and building the skills they need, they always have the option of switching to five minute binaries later.
Exchange fees not included
A highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators. She is a successful author and has published several books on topics like how to use volume analysis, trading binary options and spreads. Gail is also a frequent contributor to Stocks & Commodities magazine. She has been recognized as an authority on Volume Analysis and has been asked to speak at the Traders Expo, Traders World, the Wyckoff Volume Analysis Conference, and Tradestation User Groups.
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