So here's the deal: as someone who's been around the crypto futures trading scene, would you ever think about copying someone else's trade if you got a signal?
Since day one, I've never been a fan of signal groups. I steer clear of those sketchy ones that pop up on social media trying to get you to pay up. A lot of them are just scams waiting to happen.
I've often bashed copy trading here, honestly, I don't do it myself. But yesterday I found this free telegram signal group on TikTok. I checked it out and the signal they shared was surprisingly spot on. I didn’t take the trade since it was for XRPUSDT, but I analyzed the chart and, based on my own experience, I could tell it was a solid trade. And it turned out to be just that!
From my experience, I think experienced traders can safely copy trades because they can analyze the signals and determine if they're worth it. However, a complete newbie without any trading background would struggle with that.
Yesterday, I realized something important: for seasoned traders, there's no harm in looking for signals from trusted groups, especially if your go-to pair isn’t giving you a good entry point for the day. Just my two cents, not financial advice.
So while you're waiting for that perfect entry on your favorite pair, checking out some signals can be an option.
I learn trading myself and I prefer to follow my analyses which are my own signals. I do not have to believe in others. Most of the signal groups that are free have paid option which I also do not like to use. I do not use the free one not to talk of the paid ones.
You are right though but there are experienced traders that will follow free signals just like you explained and use it to compare his own analyses always. But the reason many people talk bad about signal groups is because of how scam it can be. Newbies can easily know not to pay any money but they can go for free ones is the reason for the discouragement.
Can you share with us that free signal or more signals, even a beginner or someone who relies on luck can make a profit from the total trades, it is true that the profit will be less than 5% but it is like that successful free signal. Try to analyze the performance of that group for the next week to see better result.
The above image was the result someone got from the signal.
Looking at the group, I noticed that the admin shares signal just a few times in a week and the past results I saw there is quite impressive.
I can be trading on two exchanges or even more exchanges. As I open long position on one exchange, I can open short position on the other exchange. I will share the one that I make profit from always and also be giving some signals. I can make it two exchanges and people on the group will believe me. Some signal groups may be like that. Also during bull market, they will only tell people to buy and all of them will believe. I do not need a signal.
Do not let that +813.46% deceives you. If you have $1000 but you decide to use cross margin and set your leverage to 75x with $10, the more would be the ROI but with little gain. If you do not understand, I can use my trading position to later explain it.
This is one thing people regularly do while trading because they felt that since they are not expert and they may lose while trading they depends on other people's signals to trade, most times they says it help them to reduce risk in the market. Most of the coin people trade at times is just pump and dump and if you enters it without properly doing your analysis you would end up losing much, so what they do is that they put up a signal group were they get information about a particular coin/token trade and they jump into market immediately the person whom they see's as above them gives and dish out the information they jump into the market to trade without knowing sometimes it may go the other way round, so I won't solely rely on trading signal to trade rather I will keep learning to know how they works so that i can comfortably trade the market.
Of course, many traders would certainly use such a signal if they were sure of its accuracy. What kind of trust should such a trader have so that the community can risk their money by following the signal of another trader, whose qualifications may be lower than your own?
I don't copy other traders trade but if they give me signal to buy or sell the coin, I will analyze for more to find if that signal is make sense so I can decide it later. I will not just enter the market with that signal especially if I don't know who are they. I will prefer to analyze for more the signal to finds more information that I need so I can know when I can enter the market.
If we can get more sources about the trade, that will help us to have more information and we can improve our analysis because we can learn more from that signal. We don't need to close our eyes on their signal because who knows that can help us to have the right time to trade.
I am not a futures trader. I like to do spot trade because I don't think I would take the risk of liquidating my entire balance. Future trade is more risky than gambling. Since I do not understand the chart well and when to take positions, I usually do not open positions. But I have tried before and most of the time I lost a couple of dollars and then I had to close my position.
Anyway, I don't know if such a thing really happens. I have always thought that those signal groups are full of scammers. So, I did not bother to try to reach them out. As I said, I am not a future trader. So, I don't think I will get any benefit from those groups. But since you found one, try to utilize it and let us know how it works.
Without the needed expertise - trading as a whole can be considered gambling on ups and downs on the chart.
But, indeed - the groups which usually make good signals are either not free / not open to the public.
So a person should always double-check the entry points given by themselves, just like Dr.Bitcoin_Strange said.
It all boils down to the knowledge and trust put into it.
You either believe in the signal and check it up by yourself, thinking that it will really work out, or you just swap it off your radar because you don't like the odds presented to you.
You know, actually those signal providers can be doing that, which categorically they are also deceiving theirself because they will encounter lose and at same time the signal they claim to be sharing, they are not paid for it, so what's their gains? Those fake (scammers) paid signal group can actually do that, but a free group might not, because what do you stand to gain?
Like I said in the OP, I never liked copying trades but what I observe is that other traders can spot a good entry point for some tokens or coin that you normally do not trade. So, I am not moved my the +800% but it was a decent one if you ask me.
If he took that trade with a position size of $10 like you said, with 75x leverage that increase the size to $750, he will only get the +800% ROI on the actual $10 used in the position, and if you look at it clearly, $10 + 800% will earn you $80 profit. A decent amount for some people here.
It will depend even more on whether you receive this signal for a fee or for free. And it can be assumed that free signals will have less value, although I cannot say for sure, since fraud is also possible here.
I have always said this. Signal groups where the admin asks for payment to become a part of it are useless, and no one should get into them. Still, free groups can be suitable for experimental purposes if someone understands the market and futures trading in general so that they don't follow the signals blindly and do their own analysis before taking any steps. So, I would also say there is nothing wrong with experienced traders being a part of such groups because they might find useful signals sometimes.
Newbies need to stay away from such things and focus on learning about trading and the market at first so that they don't get fooled by people in the name of providing them with paid signals which don't work or provide any success. Doing your trades yourself is the best practice but that is only possible if you are knowledgeable enough and understand everything properly.
I'm also not in the favor of copying others' trades in general, but if you know what you are doing, there is no harm in that.
Unfortunately this advice will fall on deaf ears, for example everyone knows that if you want to be healthy you need to eat healthy food and exercise, how many people actually follow that advice with any regularity? Very few, and while learning to trade on our own is the right way to do things, most people are always looking for shortcuts they can exploit, and they think that using the signals generated by others, they can find they success they want without the need to study the markets.
Why would an experienced trader use a signal of stranger? I think that experienced traders don't copy other traders because how are you going to trust stranger traders online? You don't know whether the trader is a bot or a real person. You also don't know whether the trader is serious with his position, has correctly calculated risks or it's just a very risky bet. There is also a high chance that a particular trader, that shares their position, is an artificial trader created and manipulated by the exchange to liquidate users' funds.
Btw, as far as I know, many traders share their positions to earn extra money from others following their positions and profiting from it but I still find it very risky.
I believe in signals from a reputable source, but still, it is good to confirm through your technical analysis; but to be honest, it makes me lazy as a trader. If you rely on copy trading, you will not learn a lot in trading because you will only be centered on what you have been given even if you also know how you can find the trades yourself.
However, it is good to have good and experience traders around you, or you should be following them so that you can be gaining from them, and you guys can share good knowledge with each others.
More often follow your own analysis than copy other people's trades.
You are right that doing something like looking for signals sometimes has to be done to find out from anywhere including in a trusted group according to us but I only use it as material for my own analysis. To help strengthen the analysis, I often use Google searches and video platforms until I finally get used to it even though I have a small capital.
I do not show interest in any signal before testing it myself but to test we need knowledge about futures trading.
I see there are some things that may be quite fundamental that traders need to learn and usually cannot be separated from the psychological ability to handle risk.
The signals that are shared can be wrong in practice and it will be quite risky for a beginner who does not understand trading by going up.
The indication of losing money is usually influenced by greed in making quick money but they do not understand how to run it properly.
It is better to learn first and if you are ready, practice trading in smaller amounts first to test our mentality.
If you are an experienced trader, you will not blindly use any trading signal or copy trading strategy, because you are already experienced in life and in this volatile market to know that, there is no free lunch.
You can be interested in or not, but if you're interested in, you will do many tests with that signal or trading strategy, before applying it for real trading. There is backward test trading script on Trading view, that can help you too.
Trading signal, copy trading strategy, are more attractive with newbie traders, not with experienced traders.