Did you recently hear from a friend about the huge profits that he is able to make after he started using binary options signals? Are you planning to do the same and earn some handsome profits in the market? If your answer to these questions is ‘Yes’, hold on for a while and go through this article before making your decision.
Well, to be true, this question can only be answered after a number of factors, like the signal providers and how well you execute those trades. These signals do sound like a shortcut to making money and eliminate the need to understand and analyze market yourself, there are some disadvantages as well.
Pros of Binary Options Signals
Successful Trades- There is no denying the fact that binary options signals do offer you an edge over others. They will provide you with all the information about when to enter in a trade and when to exit. This eliminates the need for you to do any legwork and get all the information that you need without making any efforts. The only thing that you need to do once you receive a signal is to place the trade as it is mentioned in the signal.
If you are using a good binary options signals provider, you can easily expect a success rate of up to 70% and even better at times. However, you need to remember that the success rate will keep on changing every month. If you go 78% this month, next month can be 85% and then the next can be 65% also. No matter how good the provider is, it is almost impossible for them to provide you with more than 80% success rate every month.
Additional Strategies- While some traders only rely on these signals for trading, most of the combine it with their trading strategies to further improve their success rates. It has been proved a number of times in the past that these signals when combined with trading strategies provide better returns. In his methodology, the signal is as important as the strategy. You need a perfect combination of both to improve your success rates.
Cons of Binary Options Signals
Trade Needs to Be Exactly as per the Signal- Yes, if you are working with options signals you need to be very sure that you place the trade exactly as it is mentioned in the signal. If you do any kind of alterations to the trade then there is a major possibility that the trade will backfire. Thus, it is very important to understand these signals and then place accurate trades to ensure that you succeed.
Overwhelming Options- With the increase in the number of traders using these signals, the number of companies that provide these signals is also increasing. The problem is, most of these companies are fake and are only after your money. If you choose a fake company, you will not only lose the money that you pay t them for their services which can be very expensive at times but also have a major risk of losing a lot of money in the market.
Just like most of things in life, binary options signals also come with their share of advantages and disadvantages. The most important thing to consider here is to choose a service provider that has a good reputation in the market and has been in the field from a long time. Make sure that you carry out enough research about the provider before paying any kind of service charges.