Binary options trading is a kind of investment based on the trader’s assumption that a specific asset’s value will go north or south in a certain time span. The presumption cannot be something in between right or wrong. It’s either a yes or a no. It’s like binary numbers in coding, telecommunication, and number system because the answer can be only 1(yes) or 0(no).
There are only two options or binary options. That is why it’s called binary options trading. It’s generally a safe bet, but some research from the binary option trading signals can always pay off. But what are binary option trading signals? Here are an explanation and deduction of the concept.
What are binary option trading signals?
Binary Options trading signals are alerts or messages sent by binary options trading experts or bots. It can be considered as indicators or recommendations made by the experts and bots and is often helpful in predicting the results.
Basically, binary options trading signals can generate a huge amount of profit for you as the signals or indicators are given by people and AI technology who are highly experienced and well-trained in this field. Binary options trading signals make your binary options trading experience simpler, safer, and more profitable.
Binary options traders must invest a lot of time and effort into learning how the market works and gathering more experience; binary option trading signals can be very helpful in this criterion. It is not wise to consciously put your faith in some bots or automatic trading software to place your trades. Blindly following an algorithm will result in more losses and less profit.
Categories of binary options trading signals
There are a lot of binary options signals providers out there. If you have plans to take their services, you should understand the signals first.
The market is crawling with a free signal providing services. So how do you pick the right one? One must admit that these signal providers are extremely cheap, but one must not jump with excitement as they come with a hidden agenda. The question here is, if their services are free, then how do they make their money? They are not doing charity, of course.
It has to come from somewhere. It may not be obvious how they do it, but some signal providers may need you to register under a certain broker, and that certain broker is usually a bad choice for the traders. It puts you under significant risk of losses, and they try to tempt you with a “get rich quick” policy, which is completely unreliable! So watch out for these so-called free signal providers!
The other category is the paid variety. There are also two types of paid signals. One type is where you get signals from a single source as in a single advisor.
Then there is another type, which is the multi-source signal. These are the type where you get signals analyzed from multiple sources all at once for the same trade. Generally, it’s a human trader working on his trade on the basis of signals generated by automated software, bot, or algorithms.
Binary options trading signal providers: how to find the right one
You need to understand what the binary options trading signal providers are offering if you want to compare them. A decent service should include exit, entry, and stop-loss figures. It could be exact figures or even a rulebook, and it will also include some sort of supporting info. This info might come in the form of graphs, technical analysis, and other data.
A binary options trading signal providing service should also come with some sort of performance history. These data will portray the efficiency of the
measures taken. Beware of the services that promise that you’d be rich instantly- it’s most likely to be a scam.
To pick the right binary trading signal service for you, you need to consider the points mentioned below.
Ø Check the success rate of the service. There would be a percentage for that. Check the frequency of the correctness of the signal.
Ø Check the number of signals or signal frequency as opposed to the amount of payment.
Ø Check for enough details or evidence supporting a signal. If insufficient details are given, then it might be a risky trade. It helps you filter out unwanted and risky investments.
Ø Check the price of the services provided as opposed to the quality of the service. Free services are better to be avoided. Some services might seem expensive, but remember it might be for the right reasons.
Ø Get a free trial instead. If the service is providing a free trial, that means it’s confident enough to give out crucial information and that the customer will come back for the paid experience. If there is no free trial option, it might be because the service doesn’t have enough faith in its service quality.
Ø Check for additional services provided by the signal service, excluding the signals. Some services might include how-to blogs or videos and broker integration. So those are an advantage.
Beware! Steer clear of the services that insist on registering under a particular broker because this is most likely to be a scheme.
Binary trading can be one of the most profitable businesses that will come across on the internet. If you are an expert in binary trading with lots of experience, you probably don’t need signals. However, if you’re not that confident with your trading knowledge and insights, binary options signals will provide that for you.
I hope that now you have a fair idea about what are option trading signals, and why do you need it? Hope this article answers all your questions.