How are you friends?
I hope everything goes well with you.
Today we will talk about trading,
mainly on trading signals and
Why can't we count on them?
We always see people who are talking about trading .. internet business .. ways of doing money online and financial education in general.
Well let's start, why are trading signals not recommended ? Or rather, why should we not trust them?
Basically the trading signals are sent by people who in theory do trading and who supposedly know what they are doing, now these people are going to send signals they are going to send us an entry point an exit point to a stop loss point, for example in the forex market .. not that the forex market has something to do with this but basically it's very common that occurs in the forex market, because it is the largest market where the majority of people who are starting in trading they are looking for information.
Advertising appears on trading in general, obviously on trading signals and people are going to say ok I don't know anything about trading .. I am lazy to find out about that .. so I save that step of learning ..
Here the error was committed, and the key is in the word of 'save time'
That is going to have losses due to the fact that it is not known if what they are sending is valid first of all! and second though what is being sent have a good
analysis, that person has already made a
good analysis of what's going to happen in regardless of the market if it goes
to go up, if it is going to go down, if it should to go long, short, if the stop loss point is correct.
To consider that we do not know everything that will happen during trading, if we wait for that person indicates us either by mail or by telegram.. what to do, there is a lapse of time where that person
saw what happened while are alerting the other person what to do.
Probably the odds of trade have changed enormously, so we have to see if we can reduce the stop loss.. to lengthen the target .. if it is necessary to close the trade..because there was a very volatile .. because something is happening that can affect everything.
So even though the person knows what is
doing, sending the signal trading and telling us where they are the entry, exit and stop loss points, it is very unlikely that we will be able to handle it if we do not know anything extracted by ourselves, if we do not know about price action, if we do not know how to analyze to know what this person is based on to send us that signal.
We can reduce risk when we know how to handle stop loss, when we know if the price action indicates a break against us and thus close the transaction earlier to avoid losses.
In a trading signal we will probably leave the stop loss where is and we can lose a larger amount than we should.
Options where we can lengthen the target to maybe look for an extra profit because
there is good momentum ... because there is good price action .. we'll lose those opportunities too.
Trading signals are basically mostly seen as a way to reach people who are looking for an easy way out.
I imagine that you have seen ads on youtube .. on facebook .. that what want to say is a lifestyle of financial freedom when that is not true and that is not true simple for the simple fact of money flow quadrant, it is very important to understand this.
Trading is passionate, is one of the most exciting things there and I think it is something we all must learn, honestly I think they should even teach it at school in colleges at universities not because of the fact that people end up being traders but for the fact that we have to understand how the market works, to understand that the price is not only in forex and cryptocurrencies, that was also in real estate ... real estate as we know is a complex system that requires a lot of analysis and a lot of execution during buying and selling, is not just about going to one point and leaving another.
As a conclusion about trading signals, I see that the odds of succeeding are minimal. I know that there are people who are going to say I have a friend who has taken a signal and went well, but it is not just about making a thousand dollars for example in a transaction and earning 5,000 in one, it is better to make five constant dollars that the account grows and increasing and knowing what we are managing, what we are doing, instead of depending blindly on someone else.
That's it for today, I hope it was helpful, greetings to all.