Posted by admin on July 23, 2013
Binary options trading are nothing new on the web. Daily a very large number of people engage in this practice. However, the majority of these people are struggling to find out how to actually make money using this from of online trading.
One of the least understood methods of making money while trading binary options is the usage of so-called binary options signals. These signals will help traders copying the actions performed by other professionals in the business.
Read this article in order to find out how to trade binary options using signals.
- How does it work?
One of the greatest dilemmas in the option trading business is the fact that if someone is not an expert economist, than making money though this form of online trading is extremely difficult. Most people won’t even get to the point of making consistent profits.
- So, what can people do in order to change this?
The answer is using binary option signals. So-called signal service companies provide signals. These companies are specialized in gathering various high-profile online trading experts and giving normal people the possibility to copy the actions performed by these experts.
This might be strange at the first sight. Why would professional investors and experts allow random people to copy their actions? – It’s very simple: because of profits. It’s because each time a person that has followed an expert makes money, the expert will get a commission.
The great thing is about this is that the signal provider experts will only make money in case the people who followed them will also make money. If the followers lose money, then the expert loses money as well. – This tells a lot about the sincerely and truth behind signal trading.
- Signal trading software
All what’s described above is being executed by a so-called signal trading software. Each time an expert performs an action, the signal trading software will send a message to the followers telling then to copy the action performed by their followed expert.
This way, followers can react quickly in executing the same trades as the person who they followed has executed.
- Can you really win?
This all depends on what kind of expert you are following. If you manage to find someone who is extremely skilled, then yes, you can indeed make consistent revenues by following the actions of that expert. Most commonly, you are able to choose between multiple dozen experts based on their trading performance during the past months.
And as explained above, it’s in companies that offer these services interest to only recruit extremely skilled professionals. Every party involved in this business only makes money if the end trader makes money. If the signals provided by an expert will result in followers losing money, then the expert will not make any money at all (in fact, he will be losing money).
Likewise, the company that has developed the signal trading software will also not make any money at all since their subscribers will just cancel their subscriptions if they will not be making any money at all. So, again, it’s in everyone’s interest that normal traders make money.
- How much does it cost?
The companies that provide the software that executes binary copy trading usually charge different fees. Most commonly, this fee is between $50 and $100 per month. This fee will allow traders to use the software and receive signals from experts.
But people will have to realize that this money is nothing compared to the profits they will be able to gather by following the instructions of these experts. For $100, people will be able to get out 10 times as much in profits if they manage to find a good service provider of this kind and consistently follow the instructions.
- Final Words
So, as you could have seen, it’s really possible to make money in binary options in case you are not an expert. Subscribing to a signal provider will compensate your lack of skills and will allow you to make money by following the actions performed by experts in this business.
This concept was actually first introduced in the forex business, meaning that is has a long history of success. Unlike binary options, the forex business is old and well established. There, signal trading is a common practice.
In case you wish to find out more about binary options trading and signal trading then we recommend you to read the articles and guides presented by OptionsAdvice. The website has a huge selection of educational material and info related to this form of financial trading.