As a Trader, naïve or experienced, one should know what are typical Trading Signals and who are the people who provides these and are often know as Signal Providers. And why one must also know how to assess them both.
SignalATM has summarised this information as below for your better understanding
Trading Signals are basically trading tips or recommendations with well-defined Entry Price, Target Profit and Stop Loss) and timelines.
Good Signals are the basis of taking positions, trading and making profits.
Having a Signal System is one of the critical tools for Success for Beginner or Advanced Traders.
Any Trading Signal must be time bound with definitive time frame within which it must produce results.
Every Signals must have well defined Signal parameters such as Strike Price, Target Price, Stop Loss including validity period of the Signal and expected time frame to reach the Target.
A good Signal must include a higher probability of success with favorable Reward and Risk ratio.
Further, the Quality of a Signal is defined by how good the Signal has been researched and Analysed.
The trading signals must also be mapped correctly to work well with the individual trading strategies (scalping, contra, position, day trading)
We will learn about the specific terminologies relevant to a Trading Signal in the next article
Signal Service Providers or Signal Providers are experts that provide the Trading Signals with varying accuracy and timeline.
They are required to carry out requisite analysis of technical indicators and keep abreast of economic landscape. Their offerings provide a clear path which is intuitive to the traders and the information is easy to do trading operations.
However, the Signal Provider may have inconsistent way of analysis leading to wide difference in results for his signals. Many times, when a Signal is posted, the opportunity is already gone. On occasions, the tall claims of Signal Providers are post-facto and is not verifiable.
Many Signal Providers keep changing the timeframes that results in complete confusion with the Trader. If the signal has not gone “live” before the expected validity time, the signal expires.
Most of the time signal providers lack real time updates that can be a critical factor between success and failure
SignalATM, an e-Marketplace for Traders and Signal Provides ensures, Signal Providers are chosen based on proven performance before they are onboarded. Each Trading Signal from them is assessed on certain requisite parameters such that Traders get access to only useable Signals. Signup and get access to plethora of Premium Signals.