How to make money on trading signals

Brokers who care about their clients offer a convenient service in the form of sending trading signals. It can also be obtained from other providers — many websites or private traders offer this tool. However, a safer and more profitable option will be to connect this service with your own broker: connecting is free and the signals themselves will be more efficient. You will be able to trust them completely as they will be prepared by the analysts of the company you trade with. Your broker is directly interested in providing you with the highest quality services.

What is a trading signal?

To prepare a trading signal, the expert conducts an in-depth analysis of the current market situation. Later, on its basis, it answers the question — when and in what direction should you open a position on a specific financial instrument to achieve the maximum profit. This information is sent to the trader in the form of an understandable short message — a trading signal.

Why are trading signals needed?

A high-quality trading signal provider can yield huge profits. You can have the result of a serious market analysis on hand and use it to increase your income. It is better to choose a platform that has been in the market for at least five years, then you will get an experienced and reliable assistant for trading.

Can I only trade based on signals?

Regardless of the accuracy of the signals, you must strictly adhere to your money management system and limit your risk;

When trading in any way, never forget about safety. Keep track of sufficient trade capital size and set the risk percentage for each trade.

How precise are the trading signals?

The entire stock market trading system is based on forecasts. The gist of the market simply does not allow you to predict the situation with 100% accuracy. A good ratio for every investor — 60/40, i.e. 60% of successful trades to 40% of unsuccessful ones. At the same time, the ratio of take profit (tp) and stop loss (sl) should always be the same: tp> = sl.

Conclusion: if at least half of the transactions made with trading signals generated profit for you — you have a reliable supplier and you can trust him.

Emergency exit from trade

Every investor must be prepared for unexpected losses. You may find that there will be a whole series of losing trades. In that case, it’s important to have an emergency exit plan.

You need to mark that tipping point where it is worth stopping trading immediately. For example, take a trade break every time your capital approaches a critical value. You can also set a reasonable limit for losing trades that occur several times in a row. However, when setting your loss limits, try to find a balance between risk and potential profit. Otherwise, you could miss some really important deals.