While Forex trading has a long tradition behind it, its popularity is on the decrease because it is perceived by many traders as too complex a venture and the highly bureaucratic procedures it entails are enough to put someone off. On the contrary, Binary Options trading is flourishing because it is, in general terms, simpler, more straightforward, often faster and potentially more lucrative and usually requires a lesser amount to be invested. Increased trading volumes in Binary Options trading have provided the driving force and impetus necessary for the improvement, innovation, expansion and diversification of the binary options trading providers, i.e. the brokers and the services and products they offer. The fierce competition between brokers is good for the overall advancement of this market and it is definitely to the benefit of each individual trader. At the same time, this expansion has given rise to another field; that of binary options trading signals.
Essentially and put in simple terms binary options trading signals are recommendations as suggested by an expert analyst or an automated system, both after having taken into account certain parameters as regards the markets. These recommendations are, in principle, aimed at identifying a good opportunity for profit and therefore a trader who follows such suggestions will be able to trade more successfully. This however, presupposes that the source of your binary trading signals, be it a person or a machine, has the necessary knowledge and experience in order to generate valid signals. Even if a signal is “right” however, other factors come into play in order to make the signal work, the most important one being the element of time. If you are not fast enough to place the trade immediately after you receive the signal, then the signal might soon be invalidated, especially since the market conditions often change swiftly.
The good thing is that binary options signals are simple and easy to understand and implement so, in reality, the trader should only have to worry about being around a computer or being able to trade on the go and therefore place the trade immediately via his/her account with their broker. Although signals could indeed help traders to up their game, one should always bear in mind that risks are lurking always. Binary options trading is relatively new and unfortunately still often unregulated. This is even more true for binary options trading signals, as these started to get developed after the boom of the binary options industry.
The lack of adequate regulation and control and the absence of a reliable, all- encompassing system of checks and balances, leaves room for many crooks to set up shop and try and scam people through selling them unreliable signals. Although we do not want to play down the benefits of subscribing to a signals service, our strong advice is that signals should not be followed blindly. Yes, it is true that if you have a signal service subscription then this will most probably help you identify and take advantage of certain opportunities that you might have otherwise missed out on. However, we would also strongly suggest that traders keep away from automated systems that take over your account and automatically place the trades on your behalf. Frankly speaking if you need someone else to be doing this for you and perhaps you should not be trading at all.
The best trader is the educated one, so if you do decide to invest your money in binary options trading and in binary options trading signals, then do also invest some of your time to learn at least the basics and be able to call the shots, deciding how, when, where and why to risk your funds. From the abundance of binary options trading signals available out there you can check out which one is most suited to you. In general terms do not waste time with free signals, because it is common-sensual that you are bound to get a better service if you are willing to pay for it. Also bear in mind that prices vary and subscription fees range from a handful of dollars to a few hundred dollars per month.
Before committing to subscribe to a service do the math and decide whether it is a prudent thing to do and it is value for money, since, despite often claiming to have a very high success rate, it has been shown that signals could increase your returns by approximately 60% on average. Therefore, consider how much you are willing to spend on investment, how much you are ready to give for signals and if these signals will impact your returns to the desirable level. Once you decide to commit to a signal service provider ensure they have a good past performance track record and that they are professional in their approach and service. Most reliable binary options trading signals providers exemplify such professionalism in order to retain and develop their customer base. Managing to find a good signal provider, one who gives you tips based on a solid strategy and not random guesses, will be a valuable tool and will definitely help you enhance your understanding of the markets and build-up your trading experience.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.