Paid binary options signals — “to be or not to be”
Binary options do not lose popularity: there is no need for a large deposit; first profit can be obtained in a few minutes. It is enough to determine whether the price of a trading asset will go up or down, select the amount of option and press “CALL / PUT” button. Simplicity is deceiving: you still need to set time of the option; you can not do without a detailed analysis of the market. What to do when the experience is not enough? Answer: trade using paid binary options signals.
Why sell signals?
This question is asked most often. Indeed, if signals are stably profitable, why post them in the public domain, albeit for money. You can trade yourself without unnecessary competitors. That’s right, but there are two obstacles to independent trading, which are not written about in the “Binary Options for Newbie’s” manuals:
- Trade deposit amount
You can start with $10, but how much can you earn on an option? The average profit on Forex currency pairs is 85–90% and if you open a transaction for entire deposit profit will be $9. Not much profit.
Using entire deposit in one option is a violation of basic principles of money management. It is impossible to close the deal ahead of time: trade is based on “all or nothing” principle. And if you follow the “classic” no more than 5% of the current deposit on option profit is even less. The more often you enter the market, greater risk of loss.
To compensate for the loss, you need at least the next two options to finish in profit!
To get a visible profit, you need to start with a deposit of $ 500–700, and then you can make a profit using a “calm” binary options strategy. Beginners often cannot even find such an amount; otherwise, they did not come up with options. At first glance, there is a solution: we attract an external investor and give a percentage for the use of money.
To those who think so, we recall the phrase of John F. Kennedy: “Victory has a hundred parents, and defeat is an orphan.” It is good when investor understands period of losses or even completes loss of funds — this is usually accompanied by hysteria and legal problems.
Conclusion: if a trader analyzes the market well, it is better to make his free binary signals paid. Then use funds received to trade you and owe nothing to anyone.
2. The analyst is not always a trader.
Finding a binary signal and opening an option for it are two completely different actions. Otherwise, hedge funds and investment banks did not separately hire analysts and traders. Taking responsibility for real money is not given to everyone, you need to have strong nerves to monitor how the transaction goes at a loss and ends in profit in the last seconds of the expiration.
Also, you need to constantly monitor the percentage of profitable signals and adjust strategy when the situation in market changes. It takes time and analysis of a large amount of data: from historical data of technical indicators to current fundamental events. Given that binary options trader is already overloaded with control of current transactions, it is better to let professional analysts or computer algorithms do it.
Conclusion: do not think of signal services as simple automated advisers based on 2–3 technical indicators. Real people and complex machine learning algorithms can be behind the signal.
Now that we have made sure that paid signals can be used in the exact binary options strategy, we turn to the criteria for their selection. There is no shortage of offers, each service has its advantages and disadvantages, but there are several universal recommendations:
- Statistics of positive signals should be at least 75–80%.
In the stock and foreign exchange markets, by moving to Take Profit level behind the trend, you can earn more than the volume of an open transaction. In binary options, this does not work: the profit level is fixed, always less than 100%. Not all brokers have to close the binary option before expiration. It turns out in case of losses, as already mentioned, you need two consecutive profitable options.
Of course, it is impossible to verify the reliability of statistics — this is history, you can write anything on site. The very fact of her presence can already be considered a positive factor. There are services where it does not exist at all. Also, you can additionally check the data for each asset. Results may vary significantly while maintaining overall profitability!
- Signals are connected to the binary trading platform.
Generated by a broker or as “social trading” — copying transactions of other traders. The ability to directly contact the author is usually absent. Let’s ask a question: why should a broker give profitable signals? Yes, he takes a commission from a profitable option, and everyone seems to be satisfied. Not everything is so simple: all transactions are carried out only for the money of customers, if there is profit, and then losses.
Imagine if most traders make a profit? The broker may not have enough commission income for payments, will have to add your funds, and this is a direct loss. It is better to maintain the “Profit / Loss” ratio by signals at the level of 50/50% and thus maintain the financial balance.
Important: this is the personal opinion of the authors of the article. The working methods of a particular broker may differ.
- Independent services binary option trading signals.
If the broker is not always interested in profitable trading of the client, then for independent services such as vfxAlert this is the main goal. The logic is simple: there are no profitable signals, no payment for services. The site may have a list of recommended brokers with affiliate links. The service receives additional income from registering new customers and their sales, but it is not so large as to compensate for the reputation losses from unprofitable signals.
If the client quickly loses deposit, there will be no affiliate payments!
When choosing a service, see how binary options signals work on your trading style and strategy. For example, if you live in Europe and most of the profitable trades in the Asian Forex session will have to be traded at night. This is not acceptable to everyone.
How much should binary options signals cost? There can be no clear recommendations here — the product costs as much as you are willing to pay for it. For monthly payments, do not pay attention to too large (500–800 $) or small (3–5 $) amounts. In the first case, most likely we are dealing with a SCAM project, which can be closed at any time. In the second, it is beginners who want to get money at any cost and do not expect serious progress of the project.
Let’s summarize: Every trader should have his method of how to make money on binary options. Open the option or not is always an independent solution, external services are recommended to use only as an additional factor of confirmation or cancellation of the signal.
