Binary options signals are detailed instructions that tell you what trades to make to earn money. Option signal providers have teams who spend all day analyzing the market and whenever they find a good opportunity to earn money they send you a signal so that you can do the same trade. Binary options signals only work if you are able to act on them immediately. Every minute that passes reduces the value of the signal. It is therefore a good idea to chose a signal service that can send the signals directly yo your cell phone.
Binary options signals are a great way for beginners to be able to trade like pros. Most people lose money when they first start trading with binary options. How long it takes to become a successful trader varies between different people. For some in can take as little as a couple of months. For others it can take several years. Most traders quickly earn back everything they lost once they become more successful This is due to the fact that they are able to invest more money in each option when they have learned how to trade successfully.
It is best to invest small amount in each option while learning. Once you have learned how to trade successfully you start betting 10-20 times more on each option. This allow you to quickly recoup your previous losses. It is often possible to regains a years losses in less then a month once you have learned how to trade more successfully.
Binary option signals eliminates the learning period
To subscribe to a signal service is a way to bypass the learning period all together and start earning money from day one. By subscribing to a good signal service you can start making money from day one and you can learn how to trade successfully from the trades you make. A very good way to learn how to trade successfully and make money from day one is to subscript to a live feed signal. These signals allow you to watch the expert traders that are trying to find signals for you while they work. You get to see what they do and can follow their examples to quickly become a skilled trader yourself. Live signals are a little but more expensive than other signals but are well worth the cost.
Simple and Complex signals
The two most common types of signals are simple and complex signals. Simple signals are generally cheaper than complex signals.
- A simple signal will tell you exactly what to buy and when. It will recommend a certain binary option that the signal provider thinks will mature in the money.
- A complex signal will not tell you what to buy. It will instead make a prediction about the future. It might predict that the currency pair USD/Yen will trade at 0.8976 at 12 pm. It is then up to you to find suitable binary options to trade based on this information. A complex signal requires more skill to use but can also make you more money than regular simple signals.
Choosing a signal provider
You should focus exclusively on the success rate when you are trying to find the best signal to subscribe to. No other factor is anywhere near as important as the success rate. This is due to the fact that it is the success rate that determines how much money you can earn trading on the signals.’You should always try to find a signal that has a success rate that is higher than 70%. Some really good signals feature success rates closer to 80%.
Always track all your trades that you do using a signal to see what your success rate is when trading on the signals. Your success rate can vary from the official success rate for a number of reasons. One such reason is that the binary option in question have changed from the time the signal was offered until the time you bought your option. Another possible reason is that the signal provider is providing a false success rate in their advertising.
There are unfortunately a lot of scams on the market that tries to feed on peoples greed and get them to pay for useless signals. These scams are ran by a low number of bad apples within the industry. They are unfortunately rather good at escaping justice and tend to set up a new scam service every time an old one gets discovered.
Most scams are luckily rather easy to discover. They are designed to feed on your greed and makes promises that is obviously way too good to be true. The scammers wants to get as much money as possible in as little time as possible. They are therefore making claims that will get you to act quickly without thinking.
One of the most common red flags that indicates a scam service is that fact that they promise an impossible high success rate. Often close to 100%. This is impossible to achieve over time and any success rate higher than 80% should be a warning. A success rate of over 85% is almost certainly a scam.
Another common way to spot a scam is to visit their website and see if they offer a list of active trades. If they do you should take a screen shot and come back later to see if the active position match up with their historical transactions when you get back. If they don’t then you know they cook their books to look better then they are.
A final thing to look at is the providers historical records. If their records are more or less stable month after month then it is likely that they are faking their numbers. A honest providers will have bad months every now and again. All traders do. It is not possible to avoid it.