Signals for binary options
A lot of traders who are just beginning to try to work, are interested in the concept of "signals for a binary option". The question is undoubtedly interesting and quite topical.
It's no secret that successful trading can't be done without taking into account a lot of nuances. Successful traders try to follow all changes in political situation and economy all over the world, monitor news channels and make technical analysis almost every day. But even that is usually not enough, you need to understand how the information you get can influence the market situation.
Probably, in order to reduce their own workload, some traders prefer to take a slightly different path. They simply buy trading signals, leaving the work of studying the market and forecasting to other people.
There is no need to condemn them, because not many people manage to study market analysis thoroughly. Some do not have enough free time, and some simply have basic knowledge.
But, once again, there is another problem! If you have decided to use signals in the process of trading options, then it is necessary to understand - what are these notorious "signals", which sources are worth using and which should be rejected.
Signals for trading options come in:
In addition, there is a division into additional subcategories, depending on the basis on which the signals are based:
- on indicator readings;
- on the news;
- on an individual forecast;
- on the analysis of a combination of signals (for example, news + indicator);
- at the opinion communities of traders or analytical groups.
To determine which signals are better to use is possible only by trial and error. However, it is important to understand that not in all cases the paid service is better, and the free one is worthless.
And now a little bit about signals of different kinds.
1) Paid signals.
The Internet today offers many advertisements for signals, and both big companies and not very experienced young boys in the guise of honored traders are trying to sell them. However, the most frequent offers come from groups of traders united to perform high-quality analytics and make money both from trading and from selling signals to newcomers.
Alas, but to give any recommendations in this situation is difficult enough, because without the purchase of the signal it is impossible to verify the correctness, and therefore there is nothing to say about the credibility of the seller. In addition, it is not difficult to buy positive feedbacks, and demonstrating the profitability of the previous signal is even easier.
However, if the trader is too lazy to learn, then he will have to bear the cost of checking the signals offered!
2) Free signals.
In this niche of the market there are also quite a lot of offers. And these offers are not always bad.
To begin with, it is profitable for every website promoting options brokers to provide free signals. After all, if a novice trader is convinced that the forecast is correct, then the probability of opening an account with this broker increases.
In addition, the issuance of correct signals inevitably leads to the growth of the trader's reputation. And even without taking part in trading, such a trader can earn good money. And passive income is not bad at all!
3) Signals from brokers.
On various websites one can often find speculations that if a broker receives earnings by trading in deficit, then his interest lies in losing a trader's deposit. This statement is very disputable. It is much more profitable for any broker to let people earn and get a bit less than to get rather big sum quickly together with a great deal of negative feedbacks and loose the clients as a result.
And if there are bad reviews, there will always be bad ones. Regardless of the quality of the broker, there will always be traders who break all the rules and end up losing their deposits. But, there will be at least neutral feedback and recommendations from serious and competent traders, and this, believe me, is much more important.
A good broker always has an analytical group that constantly monitors the market behavior, the news, and forms offers. The signals from such a group are free of individual preferences of each analyst, because they are issued on behalf of the team.
It is impossible to say in advance which signals are the most profitable, and it is impossible to predict the behavior of the market with one hundred percent accuracy. Even the best brokers sometimes make mistakes. That's why the main thing for a trader is to learn to think for himself and at least make sure that the signal corresponds to the general trend.