5 Minute Trades. 300 Second Binary Options

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Steven Willis
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1 5 Minute Trades 300 Second Binary Options Trading for yourself is difficult and few people succeed! I personally use high return managed accounts to make about $5,000 a month clear profit. My friend Paul Harper in the Canary Islands promotes these and other high return investments. You can get free membership to his website here: I highly recommend this as a less risky way to make money from trading! Jus click on the Buy Now button and you will find it is actually free! John Campbell October 2013 Revised July 2015

2 2 Introduction Binary Option trading has really taken off in the last couple of years but there are very few good systems among the many complete scam systems purposely designed to empty your trading account. My own SaneFX Binary is very good for end of day trading and the recently introduced hourly options can work well given a bit of discretion. This 5 Minute Trades system was developed for my own personal use after finding I was making more money trading intuitively (based on my years of experience chart watching) than I was from my own SaneFX system! The problem being that I would get bored waiting for trades and tend to take big risks to recover losses because the time between trades was too long for somebody who doesn t like the idea of actual work Indicator or signal based trading is an attempt to introduce black and white rules into the vague and often random world of trading. After all, if any mechanical system actually worked, it would have been discovered by now and everyone would know about it! Literally hundreds of thousands of man hours and countless systems have gone into the project but nothing has claimed the accolade. That being the case, 5 Minute Trades is a worthy attempt to teach trading without any indicators and to teach the idea of making trades just by finding suitable chart conditions where the odds of the price going in one direction is considerably greater than the other. Binary option trading makes this worth while because, unlike ordinary trading, we do not have to be concerned about stop losses, there is no spread to handicap us and just a tenth of a pip wins us the full profit. Must be easy then

3 3 1. Binary Option Basics I started my trading career with options back in the days before computers. We had to telephone the broker and hang on the line until a buyer or a seller could be found to take our trade. The trade usually lasted days but sometimes was over in a few hours. Binary options are a development of the original option and, as far as we are concerned, are simply higher or lower bets on the price of currency, commodities or stock market index. They are binary because there are only two outcomes win or lose. Ordinary trading gives you endless outcomes as your profit or loss is dependent on the exact number of pips the market has moved. With the new 5 minute options, we simply trade higher or lower than the exact price at purchase time and 300 seconds later we get a result, even if the price is just a tenth of a pip different. It sometimes is exactly the same; in which case we get our money back. We should use 24Option or Boss Capital (US traders) because they have 5 minute options. A loss results in losing all the cost of the option (just $5 minimum with UK option) and a win means an average 75% profit (varies from about 65% to 85%). In other words, a winning $100 option would return $175 - and this is tax free in Europe at least. Check the website for the latest links/recommendations. Quite simply, we select the instrument to trade (EUR/USD, gold, etc.), click High or Low, input our stake and click Buy when the time is right. Up pops a little chart showing the entry price and if we are in the money it shows as green, out of the money as red. We need it to be in the green exactly 5 minutes later! We can have several trades running at once although we can only have one instrument/trade showing at a time.

4 4 Most options expire at a fixed time (on the hour, half hour, etc.) but a couple of years ago, some brokers introduced 60 second options which expire not on the minute but exactly sixty seconds after you buy them. It s a nice idea and attracted huge interest from the public Make $75 every 60 seconds! It s making the brokers a lot of money because not only is trading over such a short period more likely to fail but the whole concept introduces a sort of gambling frenzy, which is of course a recipe for big losses. This is made worse by the fact that brokers offer affiliates a profit share commission and so the more you lose the more money the affiliate makes. Obviously he or she is not going to sell you a winning system under those conditions! With no spread, binary brokers only make money when you lose. Recently, UK Option, 24Option, Boss Capital and Trader s Way introduced 5 minute options, which expire exactly 300 seconds after purchase. Now, 5 minutes is just long enough to be meaningful when it comes to trading and so there are certainly profits to be made. Most systems rely on custom indicators loaded onto the standard free charting package given by normal brokers, MetaTrader. The problem with indicators is that the shorter the time frame, the less reliable they are. My own standard trading system, Rich Lazy Trader uses the daily and 4 hour charts to produce signals. I ve recently introduced one hour chart signals on my SaneFX Binary but that can only work because it has software to back test the last two month s worth of signals and pick the best times. The reason short term signals don t work well is that they will often be generated in unusual conditions, during periods when there is almost no action, just before or after news releases and close to market open/close times and, worse of all, when the market is drifting sideways. All these factors have conditions which reverse very easily and make signals fail. Discretion and human judgement is always needed! 5 Minute Trades uses no indicators but just trades from price action.

5 2. Opening an Account 5 It is possible to trade this system using any binary options broker but you will find it frustrating and have more losses if they don t actually have 5 minute options. So, it is really the only choice to open an account with 24Option (best but $24 minimum trade or Boss Capital ($10 minimum trade and accept US traders). 24Option has the largest choice of instruments but Boss Capital is very good. Serious traders should use at least two. Please use the links on Always refuse any bonuses when opening any account as they come with restrictions on withdrawals that can backfire. Not only do they encourage more sign ups but they also keep more money for the broker! It s a simple process to sign up for and it only takes a couple of minutes. Sooner or later, you will need to submit ID documents as requested (usually a scan of your passport and a utility bill). One of the great things about 24Option is that they allow deposits by several means including Skrill as well as the usual card and bank wire choices. I suggest a deposit of $250 but I would recommend $500 or more for everyone. 24Option minimum trade is $24 and 10% per trade is the absolute limit, it is safer to have more than the minimum $250 in your account. Boss Capital has a $250 minimum and a $10 minimum trade. The whole process is very simple and quick and you can be ready to trade in under 5 minutes. However, you must also have a free MetaTrader demo on your computer (a mobile version is available) and for non US clients I recommend the one from Trader s Way (link on the Home page of ) Open a demo account and download MetaTrader from within your Private Office.

Of course, any charting package or MetaTrader will do but you really need to have gold, silver, indexes and oil plus a full selection of currency pairs so you have a greater choice of instruments to

6 Of course, any charting package or MetaTrader will do but you really need to have gold, silver, indexes and oil plus a full selection of currency pairs so you have a greater choice of instruments to trade. 6 Once you have MetaTrader (MT4) downloaded and running, it s probably best to close all the default charts and start from scratch. You can run as many instruments at once as you want and they will be accessible from the tabs at the bottom. I suggest you start with just a few and increase the choice as you become more experienced. The first thing to do is to get all the available instruments and to do this click on the Market Watch button as shown ringed below and RIGHT click inside the window to give you an options menu. Click on Show all to reveal all the missing instruments. Many brokers will have commodity and index futures that expire every one or three months so you may need to renew them if they stop updating (expire). To load a chart, RIGHT click on the name (USD/JPY shown) and click Chart Window. Maximise it, click on the Candlesticks button And then on the + magnifying glass just to the right until the chart looks like the one on the next page.

7 I personally prefer to change the default colours to those shown in the later charts. Surely green for up and red for down is far better than the black and white to the right!

Now you need to save these setting so that you can apply them to every new chart easily. To do this, RIGHT click on the chart, select Template Save Template as save it as 5Min or whatever.

7 7 I personally prefer to change the default colours to those shown in the later charts. Surely green for up and red for down is far better than the black and white to the right! To do this, RIGHT click on the chart itself and click on Properties (or press F8) then change the parameters to those shown below. Now you need to save these setting so that you can apply them to every new chart easily. To do this, RIGHT click on the chart, select Template Save Template as save it as 5Min or whatever. Repeat the process for the EUR/USD, EUR/GBP, GBP/JPY, AUD/JPY, USD/CAD, USD/ZAR, USD/NOK, EUR/TRY, Silver, and Gold to start with and on each, RIGHT click, Template Load Template and select your saved 5Min to instantly set it up. Add more instruments at any time from the list given in Trader s Way or 24Option under Short Term and 5 Minutes.

8 3. Actual Trading 8 We obviously need to have both the broker and MetaTrader open and running and to be able to see both. The way to do this is to run MetaTrader full screen but reduce the size of your browser and run it in a smaller window as shown below. To do this click the restore down button top right in your browser and drag the right hand edge over to the left to reveal a useful amount of chart. Here we have a trade just finished on the AUD/NZD and you can see that it was ranging between and just 7 pips because the chart shows tenths of a pip. You need to select Short Term as shown above and then 5 minutes as just visible bottom left. Start by clicking on Forex for a really good choice of pairs. The same for Stock Pair but they display all instruments. However, the first thing to master is finding a suitable instrument displaying a suitable chart pattern - and this is what I call sideways movement as clearly seen above. This takes some experience and it s easy for beginners to get confused because MetaTrader expands and contracts the chart scale to fit everything in. However, understand that this skill will enable you to become a successful trader in your own right

9 and one who doesn t have to rely of indicators or systems that stop working after a while. This is basic chart sense that can make you money as long as trading exists!

9 9 and one who doesn t have to rely of indicators or systems that stop working after a while. This is basic chart sense that can make you money as long as trading exists! As you have probably gathered, we identify sideways movement, mark where we think the upper and lower boundaries are and then place a 5 minute trade every time the price hits one of those boundaries. This sideways movement is common outside of the main trading sessions (e.g. between the close of the US session and the open of the Asian session or for an hour or so before the open of the European session) and for some currency pairs when their home markets are closed. For example, the AUD/NZD or the AUD/JPY is likely to be less active outside the Asian session and the EUR/GBP when the European markets are closed. Additionally, we may get sideways movement in the half hour or so before a major financial news release. Or, at any random time Here s a classic example of the AUD/NZD in a European afternoon and US morning. This one took a while to get started and had an attempt on the big green candle to break out but it soon fell back. By number 1 (our first trade down or Low ) it was clear it was drifting sideways. It s a matter of experience where to put the lines but even roughly correct will produce acceptable results. Go High when the price touches the bottom line and Low when it touches the top (you may have two trades open at once).

Here are some other examples of suitable charts to trade. Here s the EUR/USD at a quiet period towards the end of the US session.

10 The lines are inserted by clicking on the Horizontal line button and 10 clicking on the chart in the desired position (twice). You can change the colour by double clicking the line, right click for Line Properties and selecting a new colour. I prefer yellow. Here are some other examples of suitable charts to trade. Here s the EUR/USD at a quiet period towards the end of the US session. Here, our lines are only less than 4 pips apart but we get eight good trades in before it breaks out downwards and our ninth would have been a loss. However, it is wise to stop after three or four trades and be happy with your profits rather than keep going until the inevitable failure. This one shows gold just before the open of the European Market.

11 11 Usually, the lines will rest on the tops and bottoms of the highest and lowest candle bodies (some wicks and tails will be above and below). Again, the price is shown to an extra decimal place, so the two lines are 13 pips apart and the price of gold moves more than currency, so this is a narrow range. Once you have a loss, stop trading and wait and see if the price continues within the range or whether the opportunity has ended. It is always best to play safe and when in doubt, not to trade. The easiest way to make more profit is to cut losses and the easiest way to guarantee no loss is not to trade! If you are not familiar with reading trading charts, take some time to scroll back through several and learn to spot the sideways movement we need. By default, charts autoscroll and so you need to temporarily turn this off to scroll back. So, to recap the complete process. First, set up as many MetaTrader charts all in M5 time frame (5 minutes) as you can from the list shown in 24Option under Short Term and 5 minutes (Forex, Commodities and Indices to start with but Stocks can also be traded). Second, log into your 24Option account and find the Short Term, 5 minute trading area and set up your browser so that the right hand two inches of chart is visible. Search through the charts every half hour or so until you find a suitable sideways chart pattern forming or formed and insert an upper and lower line for the range. Generally, these will be between 4 and at most 15 pips apart. Find that instrument in the brokers list and click on the + or next to it to open up the actual trading screen at the top. Input your stake ($24 minimum) and if the price is dropping, click High ready to trade. When the price drops to hit the lower line, immediately click Buy and your trade will open and a chart appear showing whether you are in or out of the money along with a 5 minute countdown clock. Obviously, if the price is

12 rising and hits the upper line, you would click on Low to repeat the process as above but trading in the opposite direction. 12 Until the price clearly breaks out or you have a loss, you can keep making trades. Personally, I prefer to stop at three wins in a row as I am a firm believer in playing safe and making slow and steady money rather than gambling for high profits with high risk. It s OK to have wicks and tails outside the lines but not the actual candle body. It takes at least 5 candles to establish sideways movement, depending on conditions. After a few trades, it will all become easier and clear, you will make fewer mistakes and your profits will improve. Remember, this is learning to trade from your own intelligence not relying on black and white rules and indicators. You are acquiring a useful skill and it takes time to become an expert at anything Remember not to trade within 10 minutes of a market open or when there is a news release that may affect your trade (the currency in question or the USD for commodities. You should check this by going to for any 'red' releases relevant to your trade. Click on the clock and adjust it to your local time. 24Option close commodities during the European midnight to market open but otherwise, currencies are traded 24 hours a day. Stocks and Indices are only open during their actual market hours.

13 4. Money Management & Psychology 13 Too many people treat trading like gambling and take risks that end up blowing their account. Never, but never try and recover a loss by making a huge wild trade. OK, sometimes it will work but eventually, it is certain to empty your account. Never be unwilling to simply stop trading and accept a loss for the day. The rule is to preserve our capital and live to trade another day With a minimum option price (trade) of $24 and a minimum deposit of $250 you are right on the limit with these figures. A far better minimum capital is $500 to trade $25 a time. In fact, you could safely trade $30 with $500 capital. The rule is 5% of your capital is safe and 10% is the limit. I used to be a psychoanalyst specialising in hypnosis, so I know a thing or two about the human mind and, in particular, the subconscious. I know for a fact that most people have subconscious self-destruct urges and trading (or gambling) provides an easy outlet for these! That is why most people would still lose money even given a 100% profitable trading system. So, it is extremely important to adopt the right frame of mind when trading and resist any urges to depart from your system, place random trades, increase your stake, try desperately to recover losses or take any unnecessary risks. However, if you are using sensible stakes and the chart looks good, you can double up once after a loss but only once. If you want to become a successful trader, I strongly suggest you read my ebook, which goes into great depth and covers many subjects that are useful in all areas of life.

14 6. Conclusion 14 5 Minute Trades is the first system I have ever released that teaches you to trade using your own common sense and skills, without relying on any indicators to know when to trade. As such, it offers a timeless skill that can be used to make money regardless of market conditions and for an indefinite time into the future as long as there are 5 minute options available. Take time to learn how to trade this properly, to spot suitable sideways movement and to discipline your trading and you will be able to make steady money for years to come. I personally trade this regularly and find it the best, easiest, least stressful and most profitable way to trade. With $100 options, it possible to make a living income. How many businesses with just $1,000 start up capital can you say that about? However, be aware that binary options is not real trading but gambling against the broker and the only serious trading is with a proper ECN Forex Broker trading in the real market. I actually make most of my money from my I strongly advise against trying to trade this system without have a proper 300 second options to trade. Please use the links on the Home page of as sign-up commissions are the way I make money from selling this system, not from the token $20 it actually costs! They are also more up to date. I wish you every success and sincerely hope that you make some serious money with this wonderful little system. Trading for yourself is difficult and few people succeed! I have personally used high return managed accounts to make about $5,000 a month clear profit. My friend in the Canary Islands promotes these at and if you click the Buy Now button it is actually free. All the best John Campbell July 2015

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