SMS signals for binary options. How it works?
SMS signals and binary options are one of the tools of successful trading, which some even use as a main strategy. The tool can be interesting:
- for beginners as the foundation for strategy formation;
- for those who work on intraday tactics with the expiry of the binary option in a few hours;
- for conservatives who are interested in confirmation of their opinion.
- 1 Signals in binary options: how it works
- 2 Dispelling myths about signals in binary options
Signals in binary options: how it works
Imagine that there is a research department consisting of professionals, which analyze data from technical indicators, fundamental news monitors, etc. That is what a single trader has to do (but he’s not a computer), makes the whole team. Theoretically, the same command could go on the generated signals (and most do), but if you offer the same signs on the entrance to someone else, then it is possible to earn good money!
Types of signals:
- from trader. Anyone may become a supplier, who will get to the rating or broker (that is, becoming part of his team) or the social trading platforms (ZuluTrade, etc.);
- from the service. There are many, but they offer signal tactics solely on a fee basis;
- from the brokerage company. It can work by arrangement with a group of professional managers or have their own research department. Information can be supplied in both free and paid (in the form of shares) basis. Among the brokers who offer signals: FinMax, Utrader, Opteck, Binomo, Verum, Binarium.
Format: SMS, email (with redundancy in the form of SMS on a smartphone), auto backup (auto backup or confirmation). The trader receives information in the form of SMS, and then decides.
How to choose binary options signal provider:
- check the reputation of the company in the Internet. The higher it is, the more subscribers. If there is no information on the subscribers there is a reason to think over the feasibility of partnerships;
- vendor offering profitability in binary options from 100% return per month and above — most likely a dreamer. I personally do not know any trader, who, not doing anything at all, would get 1200% per annum. If the supplier has so accurate and profitable forecasts, he probably would have taken the money in the trust than would offer signals;
- the actual forecast accuracy — 65-75% (up to 85% professionals). Promises 90% accuracy and above — no more than promises;
- the company must offer a free trial period that you can try on a demo account;
- SMS and mail takes time, so the expiration should be at least a few hours. Signal strategy through SMS – intraday tactics, for minute tactics suitable only auto copying.
Dispelling myths about signals in binary options
The ease and accessibility of predictive commerce has generated among the fans of binary options a series of myths. Someone thinks that the signaling strategy is a fraud because the brokerage company is interested in trader’s deposit. Someone said that this is an advertising campaign of brokers, but in fact they do not work. These myths discrediting the significance of the signals in the eyes of those who never used it. Dispell these myths.
- Myth 1. Signals is an advertising campaign of broker, which does not work on real account.
Signal entry points in binary options is not just an advertising campaign. It is also an attempt to help novices to master the world of binary options. After all, nobody forces to use them directly on a real account. In addition, not all broker companies have the technical ability to deeply analyze the market and to timely deliver information.
- Myth 2. Signals are specifically offered by the broker to force the trader to “leak” deposit.
The myth arose because of brokers with internal dealing. “Kitchen” — the company, which work by offsetting the positions of traders, domestic clearing. They are really beneficial to the trader losing the deposit. In a binary options broker staff there is no control, so he can not physically deliver the right signals. Professional brokers have a staff of analysts.
Conclusion: choose a partner with a serious analytical training and professional support service.
- Myth 3. Signals are not working. No broker or trader is interested to share profitable strategies.
Still very profitable! The brokerage company has its own analytical department, trader has developed a unique strategy, which receives a great profit. To sell a profitable strategy or share its essence really would have no meaning. But that’s just to earn more on the fact that someone will take advantage of the forecast, it would be very reasonable.
Important: manager shares not the strategy, but the fruits of its application. And if you are ready to invest in a manager (I’m afraid for the deposit), the signal binary options strategy — the best option.
- Myth 4. Signals not working due to temporary lag.
In search of moments the exact opening position can take from several hours to days. Because warning messages are not able to come every day at the same time. While the manager will determine the accuracy of the information received, while he will open the position until you send a recommendation, while the trader will use this recommendation will take time. That’s why signal tactics are not working with a short expiration. But if there are prerequisites for a strong trend for a few hours, the time for analysis and time for expiration strategy well worth.
- Myth 5. Paid signals the Manager is a fraud.
As I said above, investor can receive signals both from the broker or specialized resource and professional management. The myth that managers give mixed signals, come from the fields of social trading. Agree, third party signal resource, receive money, there is simply no point in giving false information. And the question of fraud on the part of the broker are listed in the “Myth 2”.
Another thing – platforms of social trading. The problem is that platforms are the intermediaries that earn on a higher spread or the turnover of the investor. They are not interested in the quality of the selection of management, and so there are a lot of scams among them. It is those who work on a demo account and a fake account with the aim to attract investors.
How to find a reliable provider of information:
- the supplier (manager) should be interested in the fact that his strategy worked and brought profit for the investor. And it is unlikely he will be interested, if we are talking about fee. Give preference to those who work on a % of your profits;
- if it is a private manager, then carefully check his trading statistics. In terms of responsibility MyFxBook platform is more reliable than ZuluTrade. An example of a well-built system of risk management can be seen in the rating Ice-FX brokers, but they only offer trust management;
- in case of deviations from the statistical error for no apparent reason change the supplier. If before you start cooperation the trader (broker) shows the accuracy of warnings about the potential opening of a position of 80% with a maximum loss series of 5 transactions, the accuracy is 60% with a series of 7 deals and above tells about potential problems.
How to use the signals correctly: advice by professionals
How reliable was the provider, trading success depends on the investor. Recommend the following guidelines:
- to work with expiry from one hour and above. There is a time delay, which can cause loss;
- on a large expiry you have time to check the data of the provider. Strongly do not recommend to blindly trust the information. There is not the slightest difficulty to understand the principles of using stochastic, moving averages, MACD, RSI and Bollinger Bands, which together with candlestick analysis show good performance;
- in case of doubt, you have every right to ask the supplier on what basis the decision was made to open the trade. He is not obliged to open the strategy, but the absence of clear answer — evidence of the dishonesty of a vendor.
Trading signals from Grosl Trader
Grosl Trader — is an independent platform of trading signals for Forex and binary options. It has its own analytical department and tests signals in a real market. Among the partners of the platform there are few binary options brokers, a trader should only choose a company. The performance of forecast — 65-85% (depends on market situation).
Grosl Trader doesn’t offer a lot of money, but a yield of about 50-70% per year is very real. For the first 3 months of 2017, the signals are already brought to 32%. Each trader is offered a free trial period of 7 days.
Summary. Signals in binary options — an auxiliary tool, but not easy way to earn money. You can’t just pay the monthly fee and earn on one button push, without understanding the principles of exchange trade. Signal strategies require a careful approach to the selection of vendor, analysis of the trading system, the constant monitoring of signals and additional retesting. Making money on signals is possible, but you need to be very careful. Stay with and be always aware of how you can effectively earn on the investment!
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