Hi, today we will discuss why new investors or traders should not follow other advice. Initially, people assume trading or investing is a way to print or get easy money but it’s not. Usually, they don’t know much about Technical analysis or Fundamental analysis, starts following others signal via telegram or discord groups. Some of them may sound relevant but in the end, they follow pump and dump schemes or just dump their own holdings.
Pump and Dump schemes
As it sounds, whales just manipulate stocks, cryptocurrencies with bad fundamentals, low volume, and liquidity and shills using media or signal groups, start buying, and creates large volume. As retail investors or traders who just follow hype and trend enter, start buying the price continues increasing, whales selling their holdings and books profit. That’s why it’s known as pump and dump skills. I am not saying you can’t book profit here but you have to be wise and quick because as soon as whales start selling price stops increasing and may fall drastically.
Instead of being a signal or call trader you should do your own technical analysis initially you may lose some money but it will be worth it. You can start analyzing some blue-chip stocks and start investing, you should keep yourself up to date on what’s going in the market, how you can benefit yourself. You can analyze charts using Tradingview (Tradingview is the best platform where you can analyze, draw charts using various indicators, and publicly posted TAs). If you can’t afford to lose money you can start paper trading where you don’t use original money. Some of the best paper trading platforms are TD Ameritrade , E*TRADE, TradeStation.