Do you find it difficult to create signals for your binary options trading? By using a Signal Provider you can skip the tedious and sometimes difficult work of analyzing huge amounts of data to find a clear signal.
Many technical analysts, especially newcomers to technical analysis, find it hard to predict what the market will do next. The seemingly endless amount of candlestick formations, technical indicators, trading strategies, and so on, confuses them to a point where they are almost paralyzed and incapable of making any decisions. They are left in a state of limbo, from which they can never reach a clear trading decision.
Since these traders know and understand all the aspects of trading – money management, asset types, etc. – they could be very successful if they could generate clear buying signals. To solve this dilemma, you can pay a signal provider to receive the signals it creates.
While this system seems like a fool-proof idea to many new traders, there are some important issues you have to consider before you subscribe to a signal provider. Here are the most important questions traders have about signal providers and the answers to them.
When you subscribe to a signal provider, the provider will contact you every time his system has created a new signal. Most of the time, the provider will send you an Email containing the asset, the type of option, and the expiration time you should use.
Some providers also offer to send signals to your phone via text message. When you receive a signal you simply have to follow the instructions given in the mail / text message, and you can invest in a binary option. Most providers offer around five to seven signals per day.
Good providers have generated a winning percentage of about 70 percent in the past, which is easily enough to make money with binary options. Of course, even the best provider cannot guarantee he does not hit a losing streak every once in a while.
Still, as long as you stick to a solid money management, you should be able to make a solid profit, if you choose a trustworthy provider. All the providers on our list above are of course trustworthy.
The price for signals varies greatly. A common price for many good, trustworthy providers is at around $100 per month. Considering the amount of money you can make with five signals per day, this is a fair price. Some signal providers are far more expensive. This, however, does not always mean they are better.
You should not have to pay more than $200 for a good system, unless you want a very special type of asset that only one expensive provider offers.
To distinguish a trustworthy signal provider from a crook, there are a number of ways:
a) Understand and like the system
The signal provider should clearly state how he generates signals. You should understand this strategy and consider it valid. If a signal provider does not state the way its system works or if you do not understand it, walk away.
As in any business, some signal providers are questionable, to say the least. Make sure your signal provider does not promise you unrealistic winning percentages for future trades and that they publishes a complete and detailed track record of all past signals.
c) The right assets
Every trading strategy works best for a certain type of asset. Every trustworthy signal provider therefore offers signals only for the assets his strategy works best for. Some traders like to trade a special asset or are reluctant to invest in some kind of asset. If you are one of these traders, make sure your signal provider offers the asset you want to invest in.
Robots take the approach taken by signal providers one step further. Not only do they create their own signals, they also invest on these signals automatically.
The weak point of most robots, unfortunately, is money management: They always invest a fixed amount. Signals, on the other hand, allow you to apply your own money management and make sure this vital part of your trading strategy does not fall short.