There are a lot of things that need to be considered before you sign up for a signals service. First, will you benefit the most from a trading robot or an alert service? Both have benefits that are worthy of consideration. Both can help you, but your goals and desires as a trader need to be considered before you jump to a conclusion. Spend a few minutes thinking about how you trade and which of these will benefit you the most.
Now you need to look at the services themselves. Let’s say that you know you want an alert service and not a robot. You still have many choices available. You need to decide whether you want to pay for a service or if you want to use free resources only. Both have benefits and both have drawbacks.
For starters, just because a service has a subscription associated with it does not mean that it is the best. Remember when we mentioned scams? This is one of the easiest scams that someone can pull on you. You need to do your research for any sort of signals service before you pay for it. You need to make sure that they have had great results in the past, and you need to make sure that the signals provided will be presented to you in a way that you will benefit from. Also, ensure that the assets that you are being given signals for are available within your broker’s choices. Most signals services are heavy on Forex trades, and most revolve around the major currencies, but not all. Getting signals for the USD/AUD is completely pointless if you don’t have access to this pair. Even if you live in Australia, your broker might not allow you to use the Aussie in trading. All of these things need to be considered.
Also, you need to ensure that the signals will be provided in a timely and useful manner. If you receive an email at the beginning of the day saying to take out a 15-minute put option when the EUR/USD drops 2 percent, but this never happens, your signal is useless. You want signals that can be used and will translate into profits. If possible, have them sent to your phone via text message. This way, you will get the message immediately without having to go through the possible delays of email, especially when you are away from home.
Justifying the Cost of a Service
A cost is not a bad thing if the service is going to help you. You might find that you need to pay to use a signals service, but if the service really is worthwhile, then you will still make a profit. Even if the service seems expensive at first, a truly great service can boost your profit rate. Let’s say that you have been making 25 percent a year in the past for a total of about $2,500 per year. If you can use a service to boost your profit rate up to 40 percent per year, that would be an extra $1,500 per year—your first year. If the service costs $1,000 per year, you are making an extra $500 per year right off the bat. After your trading capital increases, this profit number will rise even more. It is a hoop to jump through, but it does boost the amount of cash you make.
On a related note, you want to get the most out of your signals service—whichever one it is that you choose. Make sure that you know how to use the service, and that you are using the features in a way that will help you to make as much money as possible.