Many services send trading signals. It is very difficult to find out which ones are effective. Here, on the Olymp Trade Wiki, we always suggest you develop your own strategy. Take a look at our strategy section and you will surely find something you can adapt. Recently, the Olymp Trade platform has added completely free trading signals.
Key Takeaways🔑
| →Developing your own trading strategy is a reliable way to navigate the financial markets. |
| →Be wary of paid signal services, as their effectiveness can be questionable and they may not provide consistent results. |
| →Olymp Trade provides free trading signals, but they should not replace independent market analysis. |
Contents
How is it with paid trading signals?
Paid services offering signals are unfortunately most often scam. It is very difficult to assess their effectiveness. There are no reliable data on historical performance. As a rule, such websites advertise themselves with incredible profits. The main arguments against such websites are as follows:
- If the signals are so good, why their creators do not earn money on them. Instead, they sell signals for a lot of money.
- As a trader, you should know the source of your signals. You should know more about the reasons for opening a trade.
- Even if the signals are effective for a period of time, think about what you will do when suddenly every following trade is a loss.
- Trading signal providers never take any responsibility for the loss of their clients.
- Any signal provider can disappear at any time, terminate their business. What will you base your trading decisions on then?
Free trading signals on the Olymp Trade platform
As I mentioned in the introduction, the Olymp Trade platform has recently been retrofitted with a free trading signal section. Reaching the new section is not obvious. First, you have to click on the Help icon on the left sidebar. Then choose from the list Trading Signals as shown in the picture below.
The Trading Signals header itself is enriched with an information icon. It is worth to read this content.
What is important and obvious is that signals should not replace independent market analysis. It is not an order to open a position, but only an analyst’s recommendation. The information note also suggests that a given signal can be used, but no later than 10 minutes after its occurrence. This part is also quite obvious. The price of each instrument can change even in such a short time.
How the trading signal on Olymp Trade looks like
Look at the picture below. The signal is displayed in a very simple way.
First, information about the instrument to which the signal relates is displayed. We also have suggestions about the type of transaction. This can be Fixed Time Trade (FT) or/and currency pairs. Slightly above, you will find information about the recommended trading time and the exact time of the signal.
The signal is also accompanied by a short note describing the current market situation on the instrument.
How to use the Olymp Trade trading signals
When you have a particular signal and are willing to use it, you must act quickly. As a reminder, Olymp Trade recommends that you open a trade no later than 10 minutes after the signal is announced. Hence, select the appropriate trade type, open the indicated instrument and open the position. Then all you have to do is wait. In the case shown below, it was a recommendation for 5 hours.
Pros and Cons of Using Trading Signals😊🙁
Pros😊:
- Assistance: Trading signals can provide helpful guidance, especially for beginners.
- Confirmation: They can serve as a second opinion or confirmation of your own analysis.
- Time-saving: Signals can save time by reducing the amount of analysis you need to do.
Cons🙁:
- Reliability: Not all trading signals are reliable or profitable.
- Dependency: Over-reliance on signals can hinder the development of your own trading skills.
- Cost: Some signal services can be expensive, with no guarantee of success.
Comparison of Developing Own Strategy vs Using Trading Signals📈📉
| Aspect | Own Strategy vs. Trading Signals |
|---|---|
| Dependency | Own Strategy: Promotes independence. Trading Signals: Can lead to dependency. |
| Cost | Own Strategy: Costs time and effort. Trading Signals: May have subscription fees. |
| Skill Development | Own Strategy: Enhances trading skills. Trading Signals: Limited skill development. |
Final words on the Olymp Trade signals
Remember, there are no signals that always work. The same is probably true with the signals built into the Olymp Trade platform. I do not mean, the signals are useless. They are not. They can be a valuable confirmation of your own analysis. They can also serve as a filter for your trading methods.
We encourage you to test the effectiveness of Olymp Trade signals in your demo account. If you find something interesting in this matter, please let us know in the comments section below.
Follow the trend!
Quick Q&A Section🔍
- Q: What should I consider before using a trading signal?
A: Verify its reliability, understand its source, and be aware of the cost. You should also consider your own risk tolerance and trading strategy. - Q: Are trading signals always profitable?
A: No, trading signals are not guaranteed to be profitable. They are simply indications based on analysis or algorithms that suggest potential trades. - Q: Can I rely solely on trading signals for my trades?
A: It’s not advisable to rely solely on trading signals. They should be used in conjunction with your own analysis and understanding of the market. - Q: How do I use trading signals on the Olymp Trade platform?
A: You can access the trading signals from the Help section on the left sidebar. The signal will provide a recommended trading time and a brief analysis. - Q: How effective are the Olymp Trade signals?
A: The effectiveness of any signal can vary. They should be used as a part of your overall strategy rather than a standalone solution.