Signal Services.. Are they worth it?
Been babysitting the last few weeks… scoffs!
What are signal Services by the way?
If you’ve taken Bitville’s Trading Mastery Course, it’s one of the first things explained at the beginning, as well as why new or unskilled traders need it.
They simply allow you to copy the trades of a trading system or another “supposedly” professional trader.
Wait... I’m supposed to just subscribe for a signal service, copy the trade and make profit, right?
Unfortunately, the market doesn’t work that way. No way you’re going to make profit all the time.
I’ve explained this before. Market conditions change and this means that a particular system will most likely not work for a different condition. For example, moving averages will literarily flaw you in choppy, ranging markets v trending markets.
The idea is to make more profit than losses.
Over time, (maybe a quarter, half a year) you should see your trade curve sloping upwards.
Quite often, you see CT people bashing signal providers. Are they good enough? That’s for people who try them out to decide.
Market Analysis is difficult. If it wasn’t, everyone would get it right. People pay for signal services because they don’t know how to properly analyze the market and are “maybe” too busy to learn.
I figured out a few reasons why traders mess up using signal services.
-They may lack enough education on for example “Position sizing”.
You have a clean Trading set-up, but how much of your portfolio should you allocate to the entire position? How much “size” should go into the first entry? Second, and maybe third? Are you making room for error? Do you plan not to get wiped out should the market defy the analysis despite how good it looks?
A signal provider can’t tell you exactly how much margin to use because he doesn’t know the size of your account.
If you take a chunk size too early, you might get REKT before you even need to average in.
Such decisions could blow up your account in one trade.
Another is when signal providers don’t try to explain their systems/ rationale behind trades. A lot of signal providers just drop entries & exits.
I’d probably not be confident enough to take a trade based on that if even if I were a noob.
It’s important to use charted setups than sheer signals. Set-ups give a clearer picture of “WHY” - and increase confidence to take trades.
Is it really worth it using signal services?
Navigating the tricky crypto market is for the extremely skilled. If you’re not, you need a signal service to trade derivatives. The money is in that volatility.
You must learn how to properly manage your risk & size your positions if you want to use signal services.
Also, I don’t think signal services should be insanely overpriced. Some charge as high as $200-300 monthly. It’s clearly a reason for people to turn sulkers when they lose. The market is insanely volatile. Paying $300 with a chance of losing is not fair in my opinion!
By the way, If you’re looking for a high-quality signal service to profit off the turbulent crypto markets, we’ve set up the best membership structure at Bitville.