Investors trading binary options are constantly seeking an edge to improve their results, and hope to do that by finding a source of binary option live signals. The problem we mostly find are regular binary option signals, which are many times old and no longer relevant.
A few things to pay attention to when sourcing your live signals:
- Binary options are available on Forex, Commodities, Market Indexes, and Individual Stocks. Live signals that are based on algorithms cannot be used across all asset classes. Make sure you understand the methodology the signals are based on.
- Timing and duration of trade will be a major factor when determining the accuracy of the signal. A 5 minute binary options trade initiated on a one hour signal will probably not be profitable.
- Paying for signals versus utilizing free resources does not always make a difference. There are many professionals using Stocktwits, and if you manage to find the right people to follow you can get some great trade ideas there.
Types of Binary Options Live Signals
There are three types of live signals that binary options brokers provide to their clients.
- Special access to a trading signal generator, usually on a password protected part of their website
- Trade alerts that come via SMS or the brokers mobile app
- Broker / Analyst recommendations, which they call and tell you about.
We are not big fans of broker suggested trades, because they are usually not based on anything. By the time they call you, the signal is already old news. Alternatively, they call you for events like the jobs report, which are mostly a gamble.
Auto Trading Robots or Live Signals
When you are comparing B.O.T.S. (Binary Option Trading Signals) with Automated Trading Robots, you will find more positive feedback on the signals than with auto trading robots.
There is a simple reason why.
A trader that uses live signals, makes the actual trading decisions themselves. Therefore, if the signals are not great, the binary options trader will blame themselves not realizing that the signals were bad. When investors use an automated binary options trading robot, the software does all the work for them. Many people mistakenly believe the false promises that fake trading robot promise, and get upset when they lose money.
You can read more about popular auto trading signals software look here.