It would seem binary options signals are a popular topic these days. I had seen more than a few mentions of the concept of binary options signals around the web - but for the most part I ignored them - after all, I had been working the screens for so long I had my own systems and methods for trading so why bother, right? Well oddly enough I got to thinking about it and it was suddenly obvious to me what was making this new service so popular: convenience. The average trader knows what a nail-biting grind it can be to sit in front of a terminal all day. Using a signals service to make the calls for you can take the worst of the emotions out of your trading style.
Economics of Binary Options Trading Signals
In order for a service like a binary options trading signals service to be worthwhile it has to be economical for day traders. Being economical isn’t just a function of cost either, although cost is important. What other factors might be important to make trading alerts economical? How about the frequency and timing of alerts? Are the alerts coming in often enough to make a consistent trading profit? Is your contract size (capital commitment) per trade enough to justify the use of trading signals? Is the yield at your binary options broker high enough to make your service’s signal accuracy rate profitable? How high is the accuracy rate of your binary options signals service in the first place?
Any or all of these factors can play a roll in whether using a trading alerts service is worth your time.
Binary Options Signals Video
Here are some of the thoughts I describe above put into a video I found the other day. You can also see the results of the binary options signals study. I think the real takeaway here is that there are levels where a binary options signals service is appropriate to use - both in terms of economics and convenience. On the other hand, there are capital levels and trading frequency levels on the low end of the spectrum where it simply doesn’t make sense to use them. Where you end up on the spectrum depends on how much time you have to commit to day trading and whether you have enough capital (think around $1000) to make a living at it using just a signals service alone. One thing is certain, however: there definitely IS a trading frequency, capital level, and signals accuracy rate where using a premium daily binary options signals service makes sense.