With hundreds of trading signals available in facebook groups, telegram, social media, and all across the interwebs, with some being too complicated to follow and some being downright ineffective, how do you find trading signals that can actually make you money?
We made this blog to educate and make this decision-making process easier for you.
What are Trading signals?
A trading signal is a message or ‘call’ telling you when to trade an asset. It can be based on technical analysis, fundamental analysis, or a combination of both.
There are numerous factors that go into deciding whether to buy or sell an asset, so it’s important to have a system in place that can sift through all the noise and provide you with actionable steps.
The importance of using Technical Analysis and Fundamental analysis to create Trading Signals
Before we go further on trading signals, you need to know how Data Analysis functions in trading.
In trading, there are two types of data analysis:
- Technical analysis is the study of past price patterns to identify market trends and predict future price movements.
- Fundamental analysis is the study of economic factors that affect asset prices.
Combining both technical and fundamental analysis can provide you with a well-rounded view of the market so that you can make informed trading decisions.
Doing these types of analysis is a core principle of trading, as they increase the probabilities of you getting it right (buying when price is going up, selling when it’s going down) and thus making a profit when trading.
ProfitFarmers dives deep intotechnical analysis to generate our trading signals but cares much less about fundamentals. We go a little bit further in depth about this in our Understanding and Using the ProfitFarmers Market Updates blog here.
Because Analysis is so criticalto trading, the same principle applies to trading signals.
So, If you see a trading signal that does not provide any bit of analysis and promises to double your trading balance, it’s best to avoid those completely.
Small print: this might not look like a trading signal, but subliminally it is asking you to buy a coin called YUMMY for promises of future return. Stay away.
How Do Trading Signals Work?
Signal providers will usually employ 2 methods to produce their signals:
AI trading signals: Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to finda trade idea.
Manual trading signals: Manual trading is a trading process that involves human decision-making for entering and exiting trades. This is in contrast to automated trading which employs algorithms that create trades based on a certain criteria.
ProfitFarmers trading signals are different.
Our trading signals use a combination of AI algorithms and human intelligence to sift through thousands of coins to find optimal trading opportunities which are directly given to you through the dashboard.
You can then manually trade the opportunity directly in the dashboard, with a trading form that allows you to ladder your entries, choose your targets, activate a breakeven-stop loss, protect yourself from further losses with Trade Guardian, and so much more.
Once your trade plan is complete, our system then automates the rest of your trade from entry to exit, even whilst you sleep!
What Are the Benefits of Using Trading Signals?
The advantages of using trading signals is that it takes the emotion out of decision-making. Traders who are prone to making impulsive decisions can benefit from following a predetermined set of rules generated by a signal provider. This can help traders stick to their plan and avoid making costly mistakes.
Of course, no system is perfect and there is always the potential for loss when trading the markets. Before subscribing to any platform make sure that the signals have a decent win rate, a good risk to reward ratio, and historical data you can backtest.
Benefits of using a trading signals
How to Find the Best Trading Signals for You
When it comes to trading signals, there is no one-size-fits-all solution. What works for one trader may not work for another, so it’s important to find a trading signal that suits your individual trading style.
There are several factors to consider when choosing a trading signal. First, you need to identify what type of trader you are. Are you a day trader or a swing trader? Do you prefer to trade based on technical analysis or fundamental analysis?
Once you know what type of trader you are, you can begin looking for signals that fit your trading style.
If you’re a day trader, for example, you’ll want signals that provide timely entry and exit points.
If you’re a swing trader, on the other hand, you’ll be more interested in signals that can give you an indication of future price movement.
ProfitFarmers provides a thorough description of each signal and we focus on day trading. Typically we are aiming to hit targets within a matter of hours but occasionally trades can take a few days or more.
ProfitFarmers: A Cut Above the Rest
Signals are defined by their results. It shows the ability of the signal provider to provide consistent opportunity to whoever uses their trading signals.
If you take a look at the historical data of ProfitFarmers, you can see that our signals have produced a consistent win rate of 70%+, while maintaining excellent trade quality.
In addition to delivering trading signals via our dashboard, ProfitFarmers also gives in-depth market analysis, as well as long and short manual trading signals, through our market updates and Telegram channel to ensure our members have all they need to trade profitably.
All in all, trading signals are powerful tools for helping you make better, more informed decisions about when to buy or sell a particular security. By paying attention to the signals and acting accordingly, you can help take some of the guesswork out of trading and increase your chances of making a profit. What better place to start that here with ProfitFarmers?
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By now, you know what you’re getting:
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It’s like you’re getting a crypto supercomputer with decades of experience to sit over your shoulder and help you trade – all for free.
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