Prices of crypto assets are at the crossroads, but I think that the market has not reached the top yet. I rarely discuss prices or trading, and I will try to avoid in this post too.
This doesn't mean I don't trade. I watch the charts very often and make a few trades when there is an opportunity. However, I don't make charts a five-year-old could draw, without any math or logic in them. The problem with even the top YouTuber and Twitter traders, like Tone Vays for example, is they just draw some lines and follow no scientific method. What these snake-oil salesmen do is giving their best performance in order to sell their image, their courses, and their streaming time to others.
They boost their channels with thousand of paid fake bot followers, however often they may have a big part of real followers too, I can't be sure about the online numbers of followers on anyone, most have been unrealistic as has the value of many of the social media and networks.
These so-called "professional day-traders" won't give you their trading results. None of them holds seasonal data, or they don't give it to the public. They don't, because they are losing traders. They make mistakes and while maybe some of them got lucky a few times, the rest that are not YouTubers and streamers, they made ten times more during bull runs.
There is a something many should wonder about these traders:
If all these professional traders are so good at their job, why are they on Youtube selling trading courses? They should be making millions already from trading.
-Uknown
This is a great point and they always avoid talking about it. This is because these traders don't trade. They know that day-trading has terrible odds, yet they won't tell you about it. They know that 90% of day-traders are losing money in the long run, a rate that is possibly worse than gambling.
But they will keep drawing charts, pushing their lines up and down, looking for patterns in the clouds, for "head and shoulders", "rising wedges", "double bottoms", "hammers" and other stories they can think of.
These guys are not making any real analysis, they are just storytellers. They sell you their story, with perfect words that you want to hear, and will then try to sell you their snake oil.
This is how they make money, by:
selling trading or cryptocurrency courses
affiliate marketing (links on their profiles)
paid subscriptions
paid signal groups
shilling crypto projects
The most honest income stream they have is lending their streaming time to someone interested.
Some of them seem to have a consulting service too, and I would be extremely interested to know who will hire them. Anyway, they are probably finding naive investors that probably want consultation on how to buy some.
Tone Vays has been mocked and ridiculed for this Tweet. It is wrong from the beginning to the end, and the fact that Tone didn't understand this, is similar to the fact that he doesn't understand trading.
Of course, I targeted Tone too much in this post. There are so many that it doesn't matter if it is Tone, he is just the most beloved one.
Take a look at this title from another one (Cameron Fous).
How To Get Rich Day Trading Altcoins Instead of Bitcoin in 2021 ($30k Week)
Yeah, right. This butthead will teach us how to make 30k/week. And for free too!
This is the top trap. You will try it for free and get caught with your pants down!
Where is the catch here you wonder? You have to signup using a cell phone number and other private information like an address. All this information to a stranger, tha also he knows you have money that you are willing to trade.
Whatever you will say, so what. He knows not much about me. I got a gun too! Nah, a gun won't help you, this man won't contact you. He won't even be anywhere near you. A team will contact you though and will be very persuasive about the courses they want you to buy. And since you have given them your phone number, it is somehow an indication that you were interested.
Scammers will call you one day, without even knowing your details. If they have everything ready for them, including your willingness to learn about trading, what do you think they will do? You instantly become a target.
Now, I don't say that this man is a scammer, it could be many others but this Cameron Fous guy could be the most legit trader and quantitative analysis expert the world has seen. I can feel it just by looking at his picture that he has a vast knowledge of markets and decades of experience.
He certainly looks like a guy that knows his stuff.
All these day-trader streamers, don't even know that each line they draw is an equation, they don't see the math behind the charts, and they probably never heard of quantitative analysis, or never comprehended it. Most of them will brag about their experience telling you they were traders in big banks and financial institutions, as well as about their connections with executives from their previous jobs. As I understand it, these traders may have had a short background of a few years working as traders, and later resigned or fired for making a lousy job.
With just a semester of theory on financial analysis ten years ago, I know for a fact they have no idea what they are talking about. When I see them moving their lines when their predictions fail it gets even funnier. Each line they draw is a representation of dozens of parameters they completely ignore and just make a random nonsense speech with a convincing tone of voice.
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I am very noob in trading and somehow i found your article usefull keep it up buddy