Binary Options Trading Signals - Why Bother?
Posted: Feb 09, 2016
Every trader in the world uses signals, even George Soros. In case you never heard of G. Soros he is such a big trader that he can create or destroy whole markets with his trading positions. Although he will most likely use different signals than most of us, he nevertheless uses some type of signals prior to entering a trading position.
Using a signal is very important in binary options trading. Not doing so will most certainly end in loss of your capital. There is no doubt as the odds in binary options are against the trader. If you approach binary options as a gambler and enter trades guided by your gut feelings and hope, you may win a few trades (if so, walk away before it’s too late) but in the long run you are destined to lose your capital.
So now that we established that binary options trading must involve signals, we now have to ask what type of signals and where to find them. Most professional traders use technical analysis and fundamental analysis to support their trading.
Technical analysis is based on viewing charts with various types of indicators on a computer screen, sometimes several, and analyzing the prices of assets. The fundamental analysis is based on economic releases, news, and general market knowledge. Professional traders working for fund managers use both methods. However there are also many successful traders who trade only technical or only fundamental.
The problem is that most of us don’t have the luxury of learning to trade professionally. It takes a lot of time and effort, not to mention devotion, discipline and constraint. A successful professional trader must have certain character traits that can’t be easily replicated. But if this trader offers others the opportunity to copy his trades than he/she will essentially provide his knowledge in a form of a binary options signal.
This is how most signals services operate however the trader does not always have to be taking the trades. The signals can also be fully automated with software that will produce and send the signals. The software robot can also be trading on a live account. This is quite common.
Signals can be delivered via a live video feed where the subscriber watches the trader in real time, via email or text message. With these types of signal delivery you will still need to take the trades yourself. Some services now also provide fully automated systems where your account is synced to the trader’s account and trades are made automatically without your participation.
Binary options is quite easy and so it gives the opportunity for the average Joe to join in the markets and experience the feeling of trading live. The potential wins give people the incentive to participate and deposit their money. However, using professional binary options signals can literally make the difference between winning and losing all your money.
Follow this link to compare the best binary options signals
Adam Teen is a forex and binary options trader and enthusiast. He has been writing extensively about binary options and other investments on winatbinaryoptions.com and other websites.