Trading Signals – What is it?
A Trading Signal is an alert or an indicator that alerts usually a tip about the trading market sent to you either by Email or SMS or over the phone. In most cases, signals can also be given during a video conversation. Basically, an advice or any advice that brokers give the traders can be considered a signal because they have some information they are sharing with you to help you to trade well. In fact, most Binary Option Signals Providers send their alerts regularly throughout the day in an easy to read chart or graph.
However, the signal alerts are offered to investors with large accounts and to new investors so that they can make easy profits as an incentive provide by brokerages who partner with signals providers to get new traders to join their firm. In case, if your Binary Option Broker is not providing trading signals for you sincerely ask for them.
Brokers may be a little hesitant to release signals for free because they do not find any profits from it but if they appreciate you as one of their investors they should share any information they have available regarding the trading markets to help you out in trading.
Though the signals are beneficial for traders but you cannot blame the broker if the signal was proven inaccurate. But, when the investors use trading signals as their source of information for making trades, then they may expect to have a winning ratio over 75% of their investments. Make sure that whatever the signal provider you are using provides trading signals that are designed specifically for Binary Options and not for forex trading. Because the signals will show you different results for different platforms.
A good signal should describe that what an asset to trade and the price to buy the asset at the Market Value of the asset. Not only that, it also provides the time of the option will expire and what the payout percentage is for that particular trade. You need to know that, signals are indications which show you the direction either UP or DOWN of the asset’s movement. And, signals are scaled on a spectrum. The higher the strength of the signal, usually the more reliable it is.
However, signals are so helpful because as sometimes I am too focused on one single sector of the market. Instead of staying diversified and watching for the trends across a broader range. But there is no 100% possibility to win. You will see some losses as well if the prediction goes incorrect.
Most signal providers sent you some common information of trades but they differ for their reliability and accuracy rate. In most cases, the signal provider sent information like:
- Market Value
- Expiration Time
- Payout %
I am in favor of using Trading Signals but am a bit cautious about the signal providers. Usually, I don’t trade every single alert that I get from them. I receive signals from a variety of providers and based on what recommendations they give to me, I always use my own judgment and make trades that I think will be profitable for my investment. I use trading signals as a marker as they let me know about movements that are happening all over the market.