Should you depend on trading signals or just learn analysis for yourself?

Should you depend on trading signals or just learn analysis for yourself?

By MadMaxx | Psycho Crypto | 20 Feb 2020


I won't lie to you. Learning Technical analysis is possibly one of the most daunting tasks you'd ever have to face.

Most people will say that's not true, but all you really have to do is look at their balance sheets to see their results.

Technical analysis is hard to learn. But many people get away with learning it. And they succeed big time in the markets.

That said ,there are people who love the easy way out. They want to be told when to buy, when to sell and when to take profits. And losses? Nope. They don't want none of those.

And it's easy to see why. There really isn't time in everyone's busy life to just sit down and become a technician of the markets.

But should you try anyway? Should you endeavour to become a technician of the market? Or should you just go the signals way?

Here's the thing: If you want to make money in crypto, you need more than just TA.

You need news. You need volume analysis. And these two things aren't part of technical analysis. They're part of FUNDAMENTAL ANALYSIS.

And if you don't have those two tools, you'd see yourself buying before big dips, holding your bad position for days and then selling before big spikes. It's a terrible thing if this happens more than once.

Then on the other side of the coin: Signals.

They basically do all the analysis for you and tell you when to buy or sell.

A typical signal looks like:

BUY CDX/BTC at 0.00034

TP1 @ 0.00045

TP2 @ 0.00058

TP3 @ 0.001

SL: 0.00028

The signal tells you when to buy, sell, take profits and (although not in all cases) stop losses. It's basically a magic bot that does this.

The problem is that they don't work all the time. They will work once or twice, but when they fail, you're basically giving back your profits to the market. It's worse than holding a bad position.

However, some signals DO work well. And once you find the ones that do work well, it's smooth sailing from there.

The thing is to never join free signal groups. Because they're hot trash. They give you wins so that you can upgrade to their paid plan, and then if you become adamant and don't want to upgrade, you get a terrible losing streak that may end you with your capital in the hole.

The good signal groups however are very premium. They usually start at $150 a month, and can go as high as $1000 a month. The really expensive ones come with bots and APIs though.

The idea is that you'd be making so much money that the fees would be way too minute for you.

Is that usually the case? Well no. If not, we'd have a bunch of crypto millionaires already.

So should you learn TA or should you use signals?

In my honest opinion, I believe that learning TA is the best route. What if your signal company goes out of business, and you're already 100% into them? What do you do?

These are important questions that require pondering upon before you splash a month's worth of McDonald's on a signal group.

Learn TA. You'd go further than if you use signals.

Thanks for reading.


MadMaxx
MadMaxx

In the eternal quest for crypto fulfilment. I'm an obese frog on the internet, what I say most definitely isn't financial advice.


Psycho Crypto
Psycho Crypto

Fun experiments with crypto!

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