Risks with using trading Signals

[Bightening]

Trading is much more than just signals. It’s a life.
This is a theard for discussion about the risks involved in using trading signals that have become common in cryptocurrency trading. I would have posted this in Trading forum, but it’s more important that newbies see this. Knowing that after a few unsuccessful investments in cryptocurrencies, using trading signals seems to be the only ‘certain option to profit in the crypto world’. But this comes with huge risk. Risks that these ‘trading professionals’ won’t tell you about.

I already posted on a different forum, so I’ll be quoting the post here so I don’t get tagged for copypasta.

Most traders after a series of loses in the first few months of trading would go in search of trading signals from so called Professionals. This thread is to point out flaws in this trading option, and reasons why you should learn to trade yourself.
 

First, What’s a Trading signal?

Trade signals (trading calls) are a set of instructions you receive in real time that contains details of cryptocurrency to buy, what price to buy it at, the targets to sell it at and most importantly the correct stop loss to ensure minimum loss if the trade goes wrong.
 

But there’s always a BUT!


1. When using a trading signal, you have no idea how these signals were generated. If it actually came from a professional or just some random bot. It takes confidence to make a successful trade, and without confidence in the signal, there’s a high chance you’ll be losing.
 

This brings us to the next BUT
 

2. To ensure the trading signal comes from an experienced professional, people pay heavily for these signals. But even if these signals were right, the amount of profit made from these trades are small amounts compared to the amount you pay for the signals. You’ll have to trade using huge trading Capital to cover the cost of a the trading signal.
Does this sound familiar? Yes. Gambling. You’ll might get more chances Gambling than trading with these signals.
 

3. So, some traders (especially newbies) would prefer to trade using a free trading signal. But there’re no actually no free signals. They come at a cost. People who give these signals are paid by the project team, exchange or paid by large whales who want to dump their tokens.
You buy their dumped tokens and you’re left with no one to buy at the stop loss price.
 

4. The cryptocurrency market is very volatile. Profits could go as high as 400% in a few hours and dump to as low as 400% in few hours. Bitcoin, (the most traded cryptocurrency with a market dominance of over 60%) has risen by more than 5% in 24 hours, and up to 1,824% in less than 8 months. Same goes for its fall.

 

 These are just a few risks with trading signals. It’s important to note, that I don’t condemn the use of trading signals. There’re quite a good number of trading signals, but these are few. And you could never tell the difference. It’s worth much better to

- Take responsibility by making decisions yourself.
- Learn Risk Management Skills.
- Understand the process of cryptocurrency trading.
- Build your Trading Career.
 

Trading is more than just a signal, it’s a career. So you have to build it.

[JeromeTash]

I keep telling people that there is no easy money. You have to learn and the trade for yourself. Trade signals;
- Can be used to Scam you by paying for "premium signals" which are even non-existent
- Can make you lose a ton of money when you have 100% confidence in them and yet the market decided to go in the different direction
- Can be used to make you buy shitcoins and you become a shitcoin bag holder while the architects' sell orders get filled bu you.
- Can be used to make you participate in a pump and dump scheme unknowingly.

It's lazy people who don't want to learn how to trade who usually fall for trade signal scams.

[anog]

We must have this 'in the world of crypto, never trust anyone'.

Well I always realize that this activity does not make sense where the trade signals only we want to buy to pump and of course this service provider has bought before us, and this will look convincing when a project has the latest news for them to use as a form of bidding well.

[TheUltraElite]

Here are a few things about "signals":

1. The owners of the signals group pumps a shitcoin to make the braindead followers buy that coin, while they sell their shitcoin. So the owner profits while the members end up with that shitcoin on their bags. Essentially dumping some coin to get profit. A legal scam.

2. The owner will promote those shitcoins to keep the members mindset to "this coin is good" so they buy it as soon as the "signal" comes in.

3. The owner will also sell the membership to get some 200$ per every member/month - this also is a hug profit for them.

So with all these in mind would you still follow these scam groups or rather do TA on your own and trade at your own risk?

[Subbir]

I keep telling people that there is no easy money. You have to learn and the trade for yourself. Trade signals;
- Can be used to Scam you by paying for "premium signals" which are even non-existent
- Can make you lose a ton of money when you have 100% confidence in them and yet the market decided to go in the different direction
- Can be used to make you buy shitcoins and you become a shitcoin bag holder while the architects' sell orders get filled bu you.
- Can be used to make you participate in a pump and dump scheme unknowingly.

It's lazy people who don't want to learn how to trade who usually fall for trade signal scams.

JeromeTash You Right,
Don't like to buy "premium signals" premium signal 50-70% percent no guaranty  current result hence thousands of signal group fully scammer better learning from trader minimum have 5-6 years journey in trading, You have to have the skills to understand If you do not learn anything at all then you will lose many without understanding.

[acdc]

I myself never trusted the so-called trading signals. If anyone has the correct trading signal he just needs to use it to make money instead of selling it to others.
Most people who want to sell trading signals are scammers, they are trying to trick new people into this market.
If we want to make a profit on this market, we should try to learn and learn from our experience. Never decide to invest based on anyone's advice.

[Annisa_crypto]

Since the market changes every time with great speed and different strategy so traders are following all the criteria while they are trading. Trade signals are used to buy and sell triggers. There are so many criteria where traders can create trade signals. So do your own analysis about any type of signal or any inputs about the particular signal then get into it.

[bitmover]

I know people who made money on those schemes. However, they are very risky and most  people don't make any money. Quite the opposite, they lose.

And those who make money make a small 3-5% and sell.

There is no easy money or quick rich scheme without risks. And they aren't worth, most of time.

[GreatArkansas]

I have tried to subscribed before to some trading Signals especially in margin trading signals. The risk is still there, and I don't think joining on those kind of paid or non paid trading signals has no good effects on you.
As long you are learning or validating their signals or chart provided, that is okay, additional learning. But when totally copy their trades or buy/sell on what they told without validating or learning is not so okay for me.

[Darooghe]

You'd never suggest a new trader to watch signals. The basic logic to the scam part is just assessment of their business model; if the signals worked why put the effort into selling them when you already have an easier way to make money.

However, If they are free, I don't care. I might actually join them, because I have nothing to lose since, I can just make my own analysis and evaluate the signal and it gives me things to analyse and know what better traders look for. If they are paid, then alarms are ringed. I am not giving my money away unless the one running the group is a proven profitable trader. Even then, I would still have doubts. What if he suddenly stops? It's not like these things are regulated the same way large companies are. So as long as you know what you are doing and do your own analysis instead of following signals blindly, and if you don't mind what you are paying for, go for it.

[ChrisPop]

I have used to follow signals from other trader a couple of years ago, but I have learnt that it is waste of time and money. Most of them are just analysts, not traders. They don't have any skin in the game and might have hidden interests like to create liquidity for their orders or their bags. Don't recommend that at all.

[sarmrakib]

Trading is not an easy things to do. Its much easy to lo lose  money here but have a great chance to earn as well . I think it always a bad decision to follow the signal from someone or any group .You can't afford to lose money by someone call .We have to learn first and make study always on market .It will give a great knowledge to us .We have to learn from our each and every mistake .So i always suggest not to follow signal .

[LouVandetta]

Don't you ever believe trading signals. Especially the one that has paid premium signals. It's mostly only a mere speculation. It's more risky since we're just following other people's words. Worst of all if one signals could make you lose all of your money. That kinda people needs you to buy so their sell order got filled, that's as far as I know.

[electronicash]

Trading is not an easy things to do. Its much easy to lo lose  money here but have a great chance to earn as well . I think it always a bad decision to follow the signal from someone or any group .You can't afford to lose money by someone call .We have to learn first and make study always on market .It will give a great knowledge to us .We have to learn from our each and every mistake .So i always suggest not to follow signal .

there are traders who started to learn trading with altcoins. specially the altcoins paired with usdt, they are best to practice with and you can do it with the very few bucks you have like $200. its almost the same thing with btc/usdt all you need to learn is which indicator are you comfortable using with. just about 2 or 3 indicators you know how to use i think is enough for you to see where the market is going at particular time frame. once you already know, you wouldn't be joining that telegram group providing signals.

[Shasha80]

It is very dangerous to follow trading signals, both free trading signals and paid premium trading signals. Because I was
once a victim of trading signals, by following the pump and dump signals, my capital was finally used up. Indeed, we better
learn for ourselves trading strategies and analyze the market itself, so we better understand how read the market. That way
we can only make a profit. With trading signals we will not learn anything and won't get anything. because we don't understand
anything. So my advice is to avoid trading signals if you want to get one profit from trading.
  

[kanayaTabitha]

Don't you ever believe trading signals. Especially the one that has paid premium signals. It's mostly only a mere speculation. It's more risky since we're just following other people's words. Worst of all if one signals could make you lose all of your money. That kinda people needs you to buy so their sell order got filled, that's as far as I know.

Yeah if they really good at trading they won't need to make money from paid trading signals, i don't understand to the people who want to pay trading signals, did they think the signal makers is really good ? if they're really good why they're making a bussiness of trading signals instead they're just make money from tradings.
Even they can make a lot make senses analysis, all of those trades are still speculation because the crypto price movement is not enough to predict with only technical analysis

[hv_]

No signal or anything else can predict the future

The future is at risk at any time for anyone

[Hamphser]

Don't you ever believe trading signals. Especially the one that has paid premium signals. It's mostly only a mere speculation. It's more risky since we're just following other people's words. Worst of all if one signals could make you lose all of your money. That kinda people needs you to buy so their sell order got filled, that's as far as I know.

Most of these trading signals are a scam and you can't even find a legitimate one nowadays. It's better to learn trading on your own than trusting those signals which is not gonna help you to get some profit but instead they profited from you. Don't get fooled by those trading advertisement from any social platforms it might be too late to realize that you have been scammed.

[dimonstration]

It is very dangerous to follow trading signals, both free trading signals and paid premium trading signals. Because I was
once a victim of trading signals, by following the pump and dump signals, my capital was finally used up. Indeed, we better
learn for ourselves trading strategies and analyze the market itself, so we better understand how read the market. That way
we can only make a profit. With trading signals we will not learn anything and won't get anything. because we don't understand
anything. So my advice is to avoid trading signals if you want to get one profit from trading.
  

learn from experience indeed, I also once follow signal in my newbie days till I realize I should just read news and analyze the charts for my own sake. I just sometimes ask with some friends if I'm targeting a new coin or new in my eye if they have tried trading that coin, sometimes it's good to explore also and test our ability to adopt in market volatility and discover what may happen, than expect on trading signals to happen apparently won't never happen.

[andycarrol]

It is very dangerous to follow trading signals, both free trading signals and paid premium trading signals. Because I was
once a victim of trading signals, by following the pump and dump signals, my capital was finally used up. Indeed, we better
learn for ourselves trading strategies and analyze the market itself, so we better understand how read the market. That way
we can only make a profit. With trading signals we will not learn anything and won't get anything. because we don't understand
anything. So my advice is to avoid trading signals if you want to get one profit from trading.
  

it's true and I have been joining paid premium trading signals for 6 months, but it didn't end well for my profit. how can I follow their signals when prices have risen 10% before I buy, it only profits them.
better or at least have friends who are good enough in trading so we can discuss it with him.