Stock trading is an exciting and potentially profitable activity. You can use as little or as much of your money to invest in some of the world’s biggest companies, and maybe make some great money from their success.
But, how do you know who to invest in? And when should you time your investments, and when should you take profits?
These are just a few of the aspects of trading any of the financial markets, including stock trading.
One way to take the strain is to use paid signals. But what does this actually involve?
What is a paid signals service?
The term paid signals refers to a professional trader who offers their calls on potential market movements as a service. Typically paid signals are provided via email, but they can also be delivered via social media or communications apps too.
But by using paid signals, the trader effectively does your homework for you, by charting and analysing the market.
For example, if they think that a stock is primed to breakout and there are so big profits on the cards, they will let those using their service know.
Often these stock trading signals can be used for day trading, swing trading and sometimes longer investments too. A paid signals trader will normally give you reasons why they think a trade is valid, and will usually give you invalidation points too.
Isn’t this cheating?
Anyone who has ever done any kind of financial trading knows that reading charts is one of the most laborious aspects of technical analysis. You end up watching those candlesticks for tell-tale signs of a potential breakout, and if you don’t have experience it can be easy to mis-read.
So using paid signals can be a really useful way to see how someone else analyses the market, and how they do their analysis.
Usually, the trader will provide a chart with their analysis, such as trend lines, fibonacci extensions and potential points for buys and sells. This basically means you just need to check that your analysis tallies with theirs, rather than spending time picking a stock and working out if it’s going to perform.
It also means that they have spent time finding those potential gems – itself a bit of a talent.
So put simply: No, using paid signals for stock trading is most definitely not cheating.
How to use paid signals in your trading
You don’t necessarily need to follow everything that your chosen trader suggests, but they can give you a good option as part of your strategy.
Personally, when I use paid signals, I have a separate pot for their trades and another pot for the calls and trades that I’ve identified myself. This means I’m not just relying on one person for my trading movements, but does mean I often get access to calls that I would have otherwise missed.
Whatever financial class you’re trading, there will be some sort of paid signals option to help you.
For stock trading signals, I personally love the paid service from the Mindful Trader.
His analysis, entry prices, target/exit prices and stop loss levels are all well defined, and most trades are weekly or daily swing trades. This basically means you can set up your trade in a few minutes and carry on with your day.
The Mindful Trader only costs $47 a month, and can be cancelled any time. Put simply this is one of the cheapest paid signal services you’ll see out there for stock trading, and is a great investment if you’re serious.
With the right investment and a good pick, you can make your subscription money back in one or two trades, no troubles.
What platforms do you use to trade stocks?
There are several platforms that are perfect to casual stock traders. The biggest and best known is eToro.
eToro allows you to trade multiple financial instruments including stocks, forex, cryptocurrency and others.
Another option is FTX Pro, which also covers different trading instruments.
It’s worth pointing out that you don’t need to use leverage to trade stocks or any of these financial assets. You can use spot trading, which is simply using the money you have to enter a trade. Check out our guide about compound trading too.
Remember. Never trade more than you can afford to lose… Financial markets are always volatile and unpredictable, which means you can lose your money just as easily as you can make it.
But if you want a fighting chance in the potentially lucrative stock trading market, sign up for the Mindful Trader.
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