Choosing A Winning Options Signals Service
It seems like signals services all the rage these days. Just pick your asset class of choice and there are probably dozens of systems on the market touting their proficiency in picking winning trades. With so many of these systems available in the marketplace, how do investors separate the winners from the losers?
Finding the best signals services is a lot like finding a needle in haystack because many signals services, whether it’s a stock, forex, futures or options service, are just trying to sell product. They lure investors in with outlandish promises of trading riches only to disappoint in the end.
There are a variety of factors you need to consider when searching for a signals service and we’re going to explore several here. After all, you’re not only spending your hard-earned money on a signals service, you’re going to be using that service with more of your investment capital in an attempt to generate larger returns, so it pays to be a smart consumer.
Options Signals Services: What To Look For
Let’s focus on options signals services for the purposes of this article. At the end of the day, the sole purpose of a signal service is to provide the user (you) with trading ideas and recommendations. Many signal services are automated, meaning if you download their software onto your trading computer, they can be used in conjunction with your brokerage account to place trades without you being there to click the buy or sell button. These systems are most prevalent in forex trading.
On the other hand, an options signal service is likely to simply email you a trading idea. For example, the mythical “Big Joe’s Big Options Winners” service may tell you to buy the September 70 Exxon calls.