With the cost-of-living crisis, increased accessibility of financial markets, the desire for financial freedom, and a low-interest environment, more and more individuals have started to invest in the stock market. While many new investors try to navigate the internet’s overflow of information to find the best winning trades, many overlook one of the most basic ways to find guidance: trading signals.
In this blog, we have put together a list of the top reasons why traders utilise trading signals to boost their trading performance.
What are trading signals?
Trading signals are pieces of information that indicate when to enter or exit trades in financial markets and are available for every kind of asset class, such as stocks, forex, or commodities. These signals can be based on technical analysis, which examines past market data to identify patterns and trends, or on fundamental analysis, which analyses economic and financial factors that may influence the market.
Forex trading signals can come from a variety of sources, such as human analysts, trading software, and other automated systems.
The most common reasons why traders choose automated trading signals
Traders choose automated trading signals for several reasons, including the ability to analyze vast amounts of data quickly, execute trades with greater speed and accuracy and remove emotions from the trading process, providing traders with a more efficient and effective approach to trading.
So, what are the key reasons why traders choose automated trading signals?
Automated trading signals increase chances of success
Automated trading signals can help traders identify potential trade opportunities more quickly than lengthy online research and make more informed decisions. Trading signals also often provide clear entry and exit points, which can help traders manage risk more effectively.
Automated trading signals save time
Forex trading signals can save traders time by providing them with a condensed version of the information they need to make a trading decision. There is no need to navigate the internet for hours to find the right information or read dozens of pages of stock market analysis.
Automated trading signals provide access to expert analysis
As markets become increasingly volatile, automated trading signals are the best way to gain access to expert analysis and insights. Automated trading signals provide access to expert analysis by using sophisticated algorithms and machine learning models to analyze large amounts of market data and identify potential trading opportunities, providing traders with actionable insights based on the latest market trends and analysis.
Utilise Automation with automated trading signals
Automated trading signals can be used to automate a trading strategy which can be useful for traders who do not have the time or expertise to perform analysis themselves. By using automated trading signals to automate a trading strategy, this triggers trades automatically without requiring manual intervention from the trader, allowing them to execute trades more efficiently and effectively.
Automated trading signals help to avoid emotional decision making
Even if many individuals aren’t aware of it, money is an emotional matter. Emotions can therefore play a significant role in trading and can often lead to poor decision-making. Some common emotional challenges that traders face include fear, greed, impatience, or overconfidence. These emotions can manifest themselves in different ways, such as holding onto a position for too long, exiting positions too quickly, or taking too much risk.
To avoid emotional decision-making, traders can follow trading signals which include specific guidelines, such as entry and exit levels, risk management, and position sizing. This will help traders to keep their emotions in check and ensure that trades are executed logically and systematically.
How One-Signal’s automated trading signals can improve your trading performance
ONE-SIGNAL provides the shortest and most concise trading information. Signal delivery is conducted via email and includes one word, either long or short, and a stop loss for risk management purposes. Our analysis is purely based on sentiment analysis, due to our distinctive approach. We believe that markets are purely driven by emotions, and sentiment indicators are the best way to identify and capitalise on different sentiment cycles.
As our trading signals are delivered at the same time every day, our system makes it possible for traders to establish a trading routine. Each trading signal is valid for one trading day.
One-Signal offers two different subscriptions:
ONE-SIGNAL Xpert subscribers receive their trading signal 3 hours before the NYSE opening bell. Positions are entered at the NYSE opening bell and closed at the end of the trading day. This enables a systematic approach and enables individuals to establish a trading routine, whereby traders only must open their trades, go onto their daily business, and close the trade at the end of the day.
ONE-SIGNAL Xpress subscribers, on the other hand, receive their trading signals a few minutes after the NYSE closing bell. If the signal remains unchanged, they can keep their positions overnight. This is geared towards traders who don’t mind having overnight exposure and want to save on transaction costs.
And for the newcomers, inexperienced or time-constraint traders, we also offer money management services, where we take care of the execution of trades.
Our mission at ONE-SIGNAL is to make trading accessible to everyone and simplify everyday decision making. To learn more about the common pitfalls of trading and how best to avoid them, head to our Ebook [b] The 5 Most Common Trading Mistakes & How ONE-SIGNAL Can Help You or if you’d like to learn more about how One-Signal can help boost your trading success, contact us today.