Signal ProvidersHow To Choose The Best Signals Provider
If we want to take advantage of trading opportunities but can’t pass through the long learning curve, then surely the best way is to rely on a professional signal service provider.
Choosing the right signal provider is definitely one of the critical prerequisites for successful trades, among others.
It is important to ensure that you have the best signal provider as he is one who plays the role of a pacesetter when it comes to your journey in the world of financial trading through signal service.
Beginners usually tend to get carried away by the importance of having a signal provider and rush into the process of choosing one without spending ample time in analyzing what exactly the provider promises and has to offer.
Such ignorance when it comes to choosing the right signal provider could result in potential losses.
It is very easy to present a site with a professional appearance, promises and high performance percentages, when in fact it could be a scam and you risk being robbed.
Here are some vital conditions to consider before choosing the right signals provider for you:
Check for Professionalism in Your Signal Provider
Analyze and do a brief research on how professional your signals provider is. It is important to ensure that he does not have any link or does not possess a tie up with brokers under the hood.
There is no harm in making a decent investment in an honest and professional signals provider.
It is good to know that a supplier who has a high-quality service usually pay the cost of its service.
Contact the vendor
This does not guarantee that a first contact with the seller should earn your confidence. It is important to avoid blind trust by asking some questions like:
- In principle, what kind of strategy used? Trend following, Reversal .etc.
- What is the expected percentage of loss in drawdown?
- How long has the strategy been active?
These simple questions help you understand if the signal provider is trustworthy or not. Let us remember that we are investing our savings and therefore it is recommended to take all the necessary precautions.
Ignore Publicized Profit Numbers
There are cases where traders blindly follow the publicized numbers resulting in losses which could have been essentially avoided if the results were properly evaluated.
Ignoring these claims could be a better way to proceed with things until a proper and trusted signal provider is found.
Publicized numbers could be a clear and transparent publication of all the results with screenshots which reinforces trust. It can be through the transcription and analysis of actual market readings of the opening and closing prices.
For daily signals, ensure that the signals are published every day, otherwise it could mean that only positive days are published, hiding negative days.
Make Use Of Trial Periods Without Clauses
Free trial periods with a signal provider helps to evaluate performance.
However, many providers offer trial periods with clauses like "Invest on ‘X’ Broker and obtain a free trial from us". As a matter of fact, these providers receive a hefty commission from the broker once you actually invest. So it is indirectly a paid marketing/promotion of the broker considering your deposited capital.
It is a wise idea to look for providers who offer free trials without any attached conditions. In most cases, these are providers who could be able to offer a better service to you and they intend on retaining their customers by promising good returns in terms of quality signals.
Do Some Online Research
Before choosing your signal provider, make sure you make a thorough research on the internet, including forums, support websites for trading and reading the reviews posted about them.
More often than not, some of the positive reviews could actually be paid reviews/scams which are written as a way of indirectly marketing the providers themselves.
Make sure you can make out the difference between an authentic experience and a cooked up one. Negative reviews could provide you with valuable lessons when it comes to understanding what exactly is to be expected from a good signal provider.