If You Can’t Explain the Trade, You Shouldn’t Be in It

[crwth]

That is a reasonable basis for knowing how and what to trade. I do this in my work, where if I cannot explain it to a 5-year-old, I need to study more and have more references.

We accept that we can only control our trading strategy, but the market cannot, and it almost always does its thing. Understanding why you made the trade would make you less regret the decision; there's always room for error.

[Uruhara]

Knowing a few signals from an analyst can sometimes be quite helpful. However, we shouldn't rely solely on trading signals created by others. Usually, when I receive some trading signal information, I reanalyze it. If it aligns with my own analysis, I sometimes use it. However, sometimes I also skip it. This is because some signals carry risks that shouldn't be ignored. After all, no trading signal is 100% accurate. In fact, out of 10 signals shared, perhaps only 6 or 7 will be successful.

And don't get addicted to relying on trading signals created by others. This will only make us lazy about conducting our own analysis. or we can also use several signals from groups on Telegram as additional references for our independent analysis.

[CryptoHeadlineNews]

I met someone few years ago that told me that he was a trader and showed me some of his orders and how they were successful so I decided to meet up with him to share some ideas. I started out by showing him that trend lines that I did over the weekend and I was the only one talking. Even when I asked him some little details he couldn't really place his words correctly, then he opened up and told me that he only copies trade of others, it was disappointing

In such scenario, it's only best to have advice him to go learn trading personally by himself, and not feeling disappointed just as you stated above. Because the truth of the fact is that it's actually hard to find someone with series of successful trading order just as you elaborated above. Because copying signals from third party is actually not a crime, but relying on it only without ever having the intention of learning the skill to master the art of risk & money management and the ability to analyze and verify trading orders before executing it, will be the worst mistake for him or any newbie to do.

[Davidvictorson]

Simply put, if you don’t know what you are doing, then never go for a trade. Sometimes, one only trade due to peer influence or due to greed because of extreme poverty. And so they enter trading hoping to be successful like others, but only to find out than trading isn’t as easy as they expected it.

Have a goal. Acquire knowledge of trading, don't follow the bandwagon. And I strongly advised having a trading mentor. They will oftentimes make things very clear for you quicker that any textbook on trading or any YouTube trader will. They can also help you understand your trading set up. But a mentor will be willing to help if they notice that your motivation is to learn and not to look for shortcuts to make money via trading.

[Distinctin]

Why should anyone rush into trading when he knows he hasn’t acquire the basic skills and knowledge required to trade? Same with, if you can’t explain your trade, if you can’t create good technical analysis on your trade, then don’t bother to trade. Otherwise, you will not love the outcome since you will only end up broke and ruin all your hard-earned money.

Trading is good for those who knows how to trade and those who knows how to maximize their potential profits.

[passwordnow]

One of the first things most newbies in crypto trading think about is how to get access to signals, whether it is following a “guru” on Telegram, or paying for so-called "sure signals." The truth is that due to the market's volatility, there is no such thing as a sure signal.

It's just sad that we keep on seeing these fake signals guru or there is no actual signals that can make sure that everyone wins their trade. And that's the reason why we have to look at the volume of these gurus that keeps on coming out. Some were spotted scamming their community members and they're just resending the signals or analysis that's made by one of them. In return, they're getting paid just for sending it out making them look like that they're the actual trader. It's better to lose our trades because of our mistakes than to lose it without even fighting due to these fake gurus and being gullible because it's a punch to our faces that we're too lazy to conduct and learn on our own.

[HONDACD125]

Trading signals are scam. I can create 10 positions right now. I will make money and screenshot them. Only what is needed to be done is to created both long and shot positions of the same coins pairs at the same price using the same amount of money for both pairs. No loss than the transaction fee. I will then only share the winning part for people to see how good I am. They will think that I am a pro bro which is a lie.

That is exactly how these so-called experts on Telegram do it. They create free groups first, bring in people from social media platforms such as Meta or X, by making comments with fake accounts praising how a pro trader helped them make so much money, and when naive newbies see those comments, they fall for it and inquire, and they are added to the free group. That's where they start the real game. They drop a few signals each week in the free group, only the ones that are profitable, to show that they are making people so much money, and then they occasionally ask you to join their premium group by paying a certain amount and get daily signals.

Some people fall for it, and join their premium groups, but soon they realize that they are no expert because most of their signals don't turn out profitable, and whatever they post in the free group or on social media is all just a cover up and nothing real. However, once you have paid them, you don't get a refund.

[ScamViruS]

When it comes to trading, people first follow trading signal gurus, dreaming of quick profits. To make a good career in trading, you need to have the right knowledge about trading, trading skills, and the ability to do market research.

But everyone takes shortcuts, newbies join various Telegram groups for guaranteed profit trading signals, but all these groups are involved in pump and dumps. So that those who join these groups end their trading career by losing all their funds. So when a trader starts trading, he should start with a demo account and this demo account is the most effective for understanding the market.

[mirakal]

One of the first things most newbies in crypto trading think about is how to get access to signals, whether it is following a “guru” on Telegram, or paying for so-called "sure signals." The truth is that due to the market's volatility, there is no such thing as a sure signal.

Yes, and I couldn't really imagine why there are some traders who trust and believe these signals when knowing that the market is unpredictable. Of course, we can trust trading experts, but thinking that their signals are right and paying for it? I don't think so. It won't just fool us, but scam us.

Signals are simply just the conclusions of someone else's analysis, and just like any other analysis it is not 100% certain. And relying fully on someone else's signals without backing it up with your own research is synonymous with betting your funds on another person's thought process, without even knowing how they arrived there

I agree. And that should be the thing that a trader must know and realize—that it is better to be on their own and analyze the market rather than relying on the minds of others. We have to look into how these successful traders started and do what they do.

[TheUltraElite]

Signals are often not conclusions but pump and dump created by bagholders of shitcoins.

So be careful when listening to those and never trust them, its what I do.

You are assuming that every signal is a result of some homework, it might not be. Today I can say that this coin is going up 10% and you will buy it only to see that I sold that coin at inflated price.

[SquirrelJulietGarden]

Signals are often not conclusions but pump and dump created by bagholders of shitcoins.

Even the signal is not pump and dump from a scam group, there are differences in times of signal rereiving among different people. Receiving times (earlier or later) and response rate (immediately or quite long delayed) will decide results of different signal receivers.

So let's always aware of this and be cautious with any trading signal you receive and how you should react with it.

So be careful when listening to those and never trust them, its what I do.

You are assuming that every signal is a result of some homework, it might not be. Today I can say that this coin is going up 10% and you will buy it only to see that I sold that coin at inflated price.

Signals can be good but effects can be different as I described above, and for Bad Signals from scam groups and for pump and dump games only, they are more dangerous.

Trading is risky and trading with dependence on trading signals and the other people is more dangerous. Generally, with whatever trading strategies you use, depend on trading signals or not, always prioritize on defending your initial trading capital.

One of good ways to do this is using one of best weapons in trading.

[joeperry]

Signals are often not conclusions but pump and dump created by bagholders of shitcoins.

This is true but not all of them, I've seen some groups that send signals of low cap or low volume coins just to pump it and sold theirs for a profit but there are some groups that sent signals with technical analysis explanation which would make sense however it's still can't be trusted but you can get idea from it which would open to new perspective.

[mindrust]

That’s exactly what separates professional trading from gambling. Good traders know what to expect from their trades and it is no luck their trades actually generate revenue unlike gamblers where almost all them are hemorrhaging money. It is because most gambling traders pick their trades randomly without a clue of what they are doing. They just want to click stuff and hope to get rich somehow. But we all know that’s not going to happen don’t we? Trading is a serious business and you need to do serious research to make it work. Something most gamblers don’t understand.

[Russlenat]

That is a reasonable basis for knowing how and what to trade. I do this in my work, where if I cannot explain it to a 5-year-old, I need to study more and have more references.

We accept that we can only control our trading strategy, but the market cannot, and it almost always does its thing. Understanding why you made the trade would make you less regret the decision; there's always room for error.

No one’s perfect in trading, or no one has a perfect trade that will surely hit its target profits. This is the reason why majority of the traders are losing, and only few successful traders are consistently making profit gains.

However, the only advantage in trading, you can always correct your mistakes and enhance your strategy to increase your trading potentials, thus minimizing your losses while you continue to maximize your target profits. But if you keep failing on your trades, and continue to suffer from losses, then think of it, maybe you’re doing the wrong thing or you’re not just meant to be a good and successful trader.

[Zaguru12]

If you know you are still a student, just use demo account. Or you can trade with low amount of money like $10 which should be enough for learning.

Do not be a student but a pro. A professional trader will use small amount of money to trade, an amount of money that he can afford to lose.

Risk management is very important.

I don’t actually like demo accounts aside the aspect where the student is a total learner, for me demo is used for understanding most of the tools of the exchange or for some testing some analysis. This demo doesn’t actually help people to control their emotions or apply risk management. The feeling of using real asset is definitely different. So my advice to newbies or people learning trading is to simply stick to your advice of using very small amounts instead, this will give them the feeling or emotion of trading with real money other than demo. This way they can learn proper risk management if not from demo they might have learnt risk management but it might not be same with using real funds

This is true but not all of them, I've seen some groups that send signals of low cap or low volume coins just to pump it and sold theirs for a profit but there are some groups that sent signals with technical analysis explanation which would make sense however it's still can't be trusted but you can get idea from it which would open to new perspective.

The first set of signals are those memecoin traders and those promising to help members flip accounts this kind of group are should be avoided by newbies or even every trader. Then there is the second group which is usually for future traders, this community is usually for learning and signals are sent with the analysts method of analysis. This kind of groups are helpful.

I don’t go against getting signals from this group but the signals shouldn’t be trusted and just enter the market with. For me signal are just informations, you should simply use your own analysis and analyze the pair in the signal and see if it goes same way with your strategy and then you decide whether to take the trade or not

[masulum]

I don’t go against getting signals from this group but the signals shouldn’t be trusted and just enter the market with. For me signal are just informations, you should simply use your own analysis and analyze the pair in the signal and see if it goes same way with your strategy and then you decide whether to take the trade or not

People who believe in signals are generally novice traders. I was once a member of a group that frequently provided signals. However, they didn't charge for their services. I used the group to understand candlestick patterns based on signals and how to enter positions. Nowadays, signals are much riskier. Many screenshots are taken from live trading on various exchanges. They show profits of thousands percent, but not their own. This can easily deceive beginners who assume the group owner is a master trader.

[The Cryptovator]

One of the first things most newbies in crypto trading think about is how to get access to signals, whether it is following a “guru” on Telegram, or paying for so-called "sure signals." The truth is that due to the market's volatility, there is no such thing as a sure signal.

Signals are simply just the conclusions of someone else's analysis, and just like any other analysis it is not 100% certain. And relying fully on someone else's signals without backing it up with your own research is synonymous with betting your funds on another person's thought process, without even knowing how they arrived there

From the beginning of my crypto journey, I don't rely on any kind of trading signals. It's true, at the beginning of trading I lost significant amounts. But that's how I have learnt crypto trading myself. I have been following some Telegram channels, but it's because I want to be updated about the market and study some analysis done by them. There is no confirmed signal unless any big whales leak manipulation. So all of them are just free channels that I have been following; nothing is paid.

The problem is most of the newbies trust these so-called paid signal groups and lose money. At the end of the day, without losing funds, it's hard to take lessons nowadays. New traders think it's quite easy to make money from crypto trading, but the reality is so hard. We have to spend a lot of time analysing the market, especially when you choose a coin; then you must research about it. Then you have to decide whether you should enter or not. That's how a trader becomes experienced and builds themselves.

[Mpamaegbu]

The truth is that due to the market's volatility, there is no such thing as a sure signal...

Meaning that before hopping onto a particular signal/ signals, you should already have a personal strategy or signal on ground which will then be used to compare with the signal you got to know if you are right on track.

Whether volatility or no volatility, no one can accurately predict what price will be at a certain time. We're at best speculators and that's why we leave out predictions in a range. For instance, I speculate that Bitcoin's ATH for this circle will see $150k – $200k this year. You see? I can't just quote a particular figure without leaving it in a range. Once price gets into that range, it means I would be taken to be right. That's what speculators do. Are these people that should be heavily dependent on? No. You can take their predictions/signals and then run through them by yourself with whatever parameters you use. No one should be taking signals hook, line and sinker.

[Japinat]

Knowing a few signals from an analyst can sometimes be quite helpful. However, we shouldn't rely solely on trading signals created by others. Usually, when I receive some trading signal information, I reanalyze it. If it aligns with my own analysis, I sometimes use it. However, sometimes I also skip it. This is because some signals carry risks that shouldn't be ignored. After all, no trading signal is 100% accurate. In fact, out of 10 signals shared, perhaps only 6 or 7 will be successful.

And don't get addicted to relying on trading signals created by others. This will only make us lazy about conducting our own analysis. or we can also use several signals from groups on Telegram as additional references for our independent analysis.

It’s normal for some beginner traders to adopt some trading signals from other reliable traders, not because they want to be profitable as well, but because they want a helpful guide on how to come up with their own analysis and trading signals.

However, if imitating other trading signals have become a habit, I don’t think it’s still helping at all. Traders should be responsible on their own task, on their own analysis and assessment, because that will enable them to succeed on their trades. And not simply relying on any trading signal just to create shortcut, even though there is no assurance that it will work and make the trade successful.

[DaNNy001]

If you know you are still a student, just use demo account. Or you can trade with low amount of money like $10 which should be enough for learning.

Do not be a student but a pro. A professional trader will use small amount of money to trade, an amount of money that he can afford to lose.

Risk management is very important.

Trading signals are scam. I can create 10 positions right now. I will make money and screenshot them. Only what is needed to be done is to created both long and shot positions of the same coins pairs at the same price using the same amount of money for both pairs. No loss than the transaction fee. I will then only share the winning part for people to see how good I am. They will think that I am a pro bro which is a lie.

Some beginners feel like using a demo account is a waste of time because they believe that they are supposed to be trading on a live account to make an actual Profit...And there are others that make some progress with  a demo account within a few weeks and think that they can start trading on a live account immediately but this doesn't really work that way... Trading takes a lot of time and consistency to master