How To Use The Signals – Day Trading

day trading signals 300x225You should be measuring pips-gap when you analyze the success size. This is important indicator for trading the asset itself.
Binary option traders analyze the success rate. The lifetime of binary option trading that we are focused on is limited to 3 hours and only 3 hours. Single(!) pip makes the difference between win or lose.

Since the trading in the asset itself is not time limited, you can exit the position any time you want. This time issue is a huge difference!

In order to use signals for trading, it will be a good idea to use the signal as a selection decision and treat the signal as a mean-sentiment. Let’s elaborate:
The signal gives you the names of assets that statistically, have more clear direction compare to other assets.
Each signal also gives you the direction of trade (call-long/put-shout).
After you get the signal you can place an order. Still, this is only the beginning of your trading…

In regular trading, you have at least 3 decisions:
1. Position Entrance

This decision includes:

– Selection. What is the asset I should trade?

– Direction. What is the direction (long/short) I should take?

– Price. What is the price I should place?

 

2. Position Exit

This decision includes:

– Take profit. What is the profit that would satisfy me (take in consider the potential of profit that implied in the asset)?

– Alternatives. Another opportunity is growing up, When should I exit the existing position and change it to the new opportunity?

 

3. Risk Management

This decision includes:

– Stop lose. What is the lowest(long)/highest(short) price I will exit the position?

– Money management. How much money I would put in risk?
TAKE CARE. THE SIGNALS MIGHT HELP YOU ONLY FOR THE ENTRANCE DECISION!

To make money, you will have to be focused also in the 2nd and 3rd decisions.
After getting experience, you will adjust and synchronize all the 3 decisions in such a way that you will make money more than you lose… Unfortunately, there are no shortcuts. Those adjustments and synchronization takes time.