Tactics to use signals
Important information for using signals and trading with cryptocurrencies. We recommend to observe these!
OverviewNever forget that there is no guarantee of profit in the crypto market. Trading with cryptocurrencies is highly speculative.
If necessary, you can lose your invested money by trading incorrect or risky!
There is no allround solution when trading with cryptocurrencies
You have to be aware of this!
MH Signals does not promise you any profits, we only generate hints from the current market situation. You can trade with the signal or not! It's up to everyone!
We can give you a little guide on how to handle signals and how to use them in the best possible way.
Always monitor the market
You can get the best tips from the best financial specialists, the market situation influences everything.
The entire Crypo market is dependent on Bitcoin price. This is easily influenced by rumors or news from famous people.
Even if you get the best tip, if the market is influenced by rumors or news, you will make losses even then, because the Bitcoin price pulls all Altcoins down.
It is not enough if you rely solely on signals or a trading bot. Each user is responsible for it and should watch the market if you do not want to lose money.
We recommend Tradingview BTC/USD to get an overview of the current situation.
Another good indicator ist the Bittrex Mainsite (or other exchanges overview)
If you sort the column %change (of the last 24h) in descending order you will get a very good overview of the current market situation.
In this example, only 5 markets have seen more than 10% price increase in the last 24 hours. In a normal market situation, the entire first page should have more than 10%. This is a very good indicator of the purchasing power of Altcoins.
If the Bitcoin price increases enormously in a short time, we send few signals. The reason is that in this time a lot of volume is pumped into the crypto market and the willingness to buy Altcoins is low.
Even if few signals are generated during this time, this is no guarantee that you will generate high profits as the market is unstable during this time. Most Altcoins buyers wait and watch the Bitcoin price because they want to withdraw any resulting winnings.
Only after the market has stabilized, the willingness to invest in Altcoins increases. Please note, however, that after a rapid BTC price increase, once the next peak is reached, a price drop will follow.
If you trade at this time, most of the Altcoins will follow the BTC price and go down.
Nobody can foresee how the BTC price will develop and from the past we have learned that this can happen very fast and not calculable. Suffice it even a rumor about a possible regulation of an important country or governments want to increase the price of electricity in China due to Bitcoin Mining (for example).
If you have an open trade during this time, it will likely end in losses.
This is important to understand that there is no guarantee and nobody knows how the market will develop. Sometimes a spark is enough and the price can go down. If the price goes down, there will be enough panic sellers who think I'll sell at a loss rather than lose everything. But we have also seen in the past that the market can turn very fast again and maybe you should just have a little patience to make a profit from a loss.
The best time for Altcoins is after the Bitcoin price has gone up and settled. What I want to say .. it all depends on the current market situation and this decides whether you win with the signal profits or not.
Therefore decide for yourself if you are ready to use signals and always watch the market. Understand why sometimes you get more and sometimes less signals and when the chance to make a profit is highest and lowest.
Optimize your targets
If you watch the market closely, then optimize your targets. If the market is stable then you can increase your profit target. On the other hand, you should reduce this target if the market is unstable. If you do not respond and use your target from a stable market in an unstable market, then you will most likely fail to achieve those targets and thus make losses.
Therefore, you should definitely adjust your profit goals to the market!
Just be ready to risk if you can live with losses
If you put everything on one card, you are guilty yourself. If you put everything on red at roulette then you have a 50/50 chance to win. But you have to expect that you lose everything. If you lose, you can not blame the casino, but you were aware of the risk.
Therefore, do not settle for everything, do many small trades. You will be able to slowly but steadily make profits and keep your losses low.
Anything you trade with should also be money that you are prepared to give away, in the worst case. It should never be money without which you can not live. Dont forget this fact!
The crypto market can turn very fast. Therefore, be patient with trading. Not every trade that is currently negative has to be negative. In just a few hours, a loss can turn into a profit, and a signal that starts negatively can change to high profit after a few hours. For us a signal is only negative after 24h!
SummaryPlease note these hints if you want to successfully trade with cryptocurrencies in general and/or with signals. Nobody can guarantee you profits, but it is up to you which targets, settings and tools you use, to what extent you let yourself be guided by emotions and what you expect yourself. If you ignore all rules you will end with loss maybe!
The MiningHamster Team