Binary options are hours сoncours for the speed of benefit — just click the "CALL/PUT" button and within two minutes increase the sum on your deposit. However, all is not so simple: it isn't sufficient to decide if the price will go up or fall down; you additionally need to select the validity (expiration) of the transaction.
This factor is missing in the forex and securities exchanges and professional traders, as well as the novice ones, have problems with termination. vfxAlert live trading signalscan help take care of the issue.
Why publish signals?
The first and most significant question among all. For sure, if there are reliably gainful signals, why offer them to other people. You can exchange yourself and not be afraid of the challengers. This is right, yet there are two undetectable, from the start, obstacles to free trading, which are never discussed on in trading classes on binary options:
1. Deposit Amount.
Some binary trading platform has a basic option amount starting at $1, but how much can you earn in this situation? Ordinarily, the benefit on Forex currency pairs sets is in the scope of 85-90%, and if you open, for example, at $10, we get a sum of $9. This sum is very small.
Utilizing the entire deposit in a single option means breaking all rules of proper money management. Exchanging is based on the principle of "all or nothing", it is either difficult to finish the deal early, or the percentage of return is insignificant.
And if you follow the “ordinary” 5% of the current deposit on the transaction, the amount of benefit is even less. Obviously, you can open arrangements more frequently, yet then the danger of loss is greater. Remember that the level of benefit is under 100% and to compensate for losses you need two gainful options in a row!
For noticeable benefit, you have to begin with a Deposit of 500-700 dollars, at that point you can benefit from "calm" day trading and medium-term exchanges. For the novice traders, regularly even such a sum is a lot for them, else they didn't manage binary options.
You can go the other way: attract an outer financial specialist and percent for utilizing the funds. But, as we often see, "good" financial specialists are not more common than the white tigers. It is good when he comprehends the period of financial losses or even a total loss of assets. This is generally joined by fits of rage and legitimate issues.
2. A good binary options trader and professional analyst is not always the same individual.
Finding a profitable signal, being totally sure about your strategy, and opening choice for real funds are completely two different activities. In reality, there are both brokers and analysts in stock investments and banks. Not every person is given the obligation to operate with real money, you have to control your nerves and not lose focus, observing how the option goes at a loss and closures in benefit in the two latest seconds.
At the same time, you have to continually screen the level of gainful signals and modify the strategy when the market circumstance changes. This requires time and investigation of a lot of information: from historical data to the release of fundamental events. Given that the trader is already faced significant loads, it is smarter to do this by analytical experts or PC calculations.
How to utilize signals?
Since we realize that outer signals will be useful and these are not just programmed Expert Advisors, but real persons and complex machine learning algorithms, we can speak on how to utilize them in exchange.
Real binary options signals from the vfxAlert software are just suggestions, with no risk for potential losses to clients. The final choice to open a deal or not stays just with the trader.
Let’s begin with the option where the signal will be the source for making a decision. This is the thing that novice traders regularly do: they get a signal, click "CALL/PUT" and don't think about the next steps. With all appreciation for vfxAlert for its signals, this methodology is still not recommended, despite the fact that the notable Dow theory States "everything repeats" and this statement has been more than once affirmed by the market.
There is no logical inconsistency here. Despite the complexity of mathematical algorithms and indicators utilized, we are managing verifiable information, since nobody needs to investigate the future of trade exchanging, except if obviously you are the Central Bank or a market maker moving the cost toward the path you need.
The service can just attempt to lessen signal errors to an acceptable level, however, it is difficult to totally exclude the chance of a mistake, the trader must consider this.
Therefore, the most profitable option is to utilize vfxAlert in conjunction with a circumspect trading strategy, and here you are already able to select how to do it: your signal confirms the strategy or a strategy confirms your signal. Both options are practically equal, the primary concern is that the fundamental rule of technical analysis isn't broke "to open an exchange, you have to get at least two affirmations of the entry point from different analytical tools." Let's check how it looks in practice:
You see two simple moving averages (SMA) on the chart: the "slow" SMA (15) and the "quick" SMA (5). The classic exact binary options strategy is used: choices are opened when the «fast» gets through the «slow» or drives from it.
The image already shows the first signal for a possible PUT option — the Doji candle and the following downward candle. But, SMA (5) is just beginning a bounce back and the inquiry emerges: has the downtrend is already started or is it only a little pullback and the uptrend will continue? Don’t forget that, moving averages are the most retarded technical analysis tools and you can enter when the trend closures and it will be hard to accurately calculate the expiration time.
Let’s look at vfxAlert: a solid downtrend signal for our currency pair and the sign is determined from a huge volume of authentic information of the CCI oscillator (Commodity Channel Index) demonstrating the dynamics of the current or new trend.
In this manner, we got three affirmations: from candlestick analysis (Doji), technical (SMA), and historical information (vfxAlert). This essentially improves the probability of the completion of a new PUT option in profit.
Read more how binary options signals work on our blog, and get stable profits!
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