Trading Binary Options With Professional Signals
What is a signal service and why would anyone want to use it
Trading is difficult, especially when you're doing it with your own money. Trading binary options is easy to execute but it is a lot harder to be wining consistently day in and day out. In the case of binary options most trading is done by the trader and for the trader, it's not usually on behalf of a client. Serious investors and their representative portfolio traders prefer the security and mechanisms of spot trading. Although there are some advantages trading binary options, it also carries the risk of losing 100% of your trade amount in a bad trade. If you win you receive a 70-90% of your trade amount. Therefore in binary options it is important to win at least 70% of the time. If you know your calculations you'd know that winning the markets 70 of the time is quite challenging. A professional signal service can give you the edge that you need to achieve success in trading binary options.
How are the signals generated?
The signals are usually generated by either professional traders or automated software. Both methods can be effective, however signals from a professional trader are usually valued higher and are also usually more expensive, since there are a lot more overhead costs for the supplier. Let's examine these two methods in further detail.
Signals generated by professional traders
The binary signals generated by a professional trader or a group of traders (very rare) constitute of a real person examining the charts and possibly also looking at fundamental analysis, such as news releases or market minutes to produce a trade alert. This signal is then sent out to subscribers' emails or mobiles. The supplier may use an internal software or an online platform to send signals. The actual transfer time is very fast, just as sending an email or a text message.
In some cases the signal supplier opens up a live trading room and subscribers can actually watch, listen, and copy the trader in real-time. This, however, requires slightly greater commitment from the subscriber and there might be a slight learning curve. On the other hand, this might be a perfect solution for someone who wants to learn to trade and experience binary trading first-hand.
All professional traders rely on charts and indicators, some of them may be standard, i.e. the Moving Average, Bollinger Bands, MACD, and some may be customized. The most important indicator for binary options trading is price action itself.
The video below shows how binary signals can be provided to subscribers in a live trading room led by an experienced binary broker. Signals provided in this fashion are usually for very short expiry times such as 1,2, 5, or 15 minute trades.
Example of live binary signals called by a professional broker
Signals generated by automated software
These type of signals are fully automated. The pre programmed algorithms constantly analyse the underlying assets and as soon as certain predefined conditions are met on the charts a signal is sent to the subscriber via an email or SMS message. The automated programming of the signals is usually done by a group of experienced traders who can tweak their software at any given time to optimize its efficiency.
These type of signals tend to be popular and liked for their simplicity. There is no learning curve for the subscriber and they can be received and traded anywhere using only a mobile phone. The subscriber doesn't need to learn to trade or be locked to a computer screen at specific times of day.
The automated signals send via email or sms text message tend to be for longer time frames using 30 minutes and 1 hour charts leaving plenty of time to the subscriber to lace the trade.
Example of a trade alert sent by email
A quick question - Which signals will be more accurate?
Can you guess?See results without voting
The Answer and final word
The truth is that it is very difficult to say that one type of signal is better than the other. Historically signals administered by live traders did better than automated signals but markets change every single day and past results are only an indication of how a signal service had performed. There is no guarantee that a signal service that had 80% of wins previous month will have the same results next month. To look at various signal providers and see how they performed in the past please compare binary options signals here.
There is a lot of misunderstanding about binary options and unfortunately this also applies to signals. Generally they are very useful and can be a real life saver for people who are not expert traders but still want to explore and trade binary options to make money.
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