Whenever you begin something new or make a new purchase, what are the first few things that you are bound to do? For example, if you hear that the Crypto VIP Club software assures great results, what are your first instincts?
- Check the cost/fees involved
- Measure the output/performance and the quality
- Read other customer reviews and useful tips
However, what is the one thing that most people tend to skip? It is nothing but the simple evaluation or the verification of the reviews and tips that they read online. Evaluating tips and verifying reviews also form an important part in your decision-making because this is the only way by which you can ensure that there is some truth among all these tips and reviews.
Similarly, when you begin your first stint in trading, you will come across many tips, rules, advice, tricks, and instructions all around you, especially over the internet. However, how do you ensure which ones are true and which ones are mere words? This article will briefly explain to you how to evaluate or verify the tips and advice that you find online.
- Validate the source – The source of everything is very important. Will you buy a Rolex watch from your local supermarket or a Rolex-approved showroom? Similarly, while reading tips, you need to know from where the tip/advice is coming. Is the source reliable and most importantly is it impartial? You also need to evaluate whether the source has other ulterior motives, for example, whether a particular brokerage pushes you to trade with one particular type of broker.
- Check the timeframe – Everything has a time stamp attached to it. For example, when you by a food product you need to be concerned with its manufacturing date and the expiry date. Similarly, when it comes to evaluating the efficiency of the trading tips, you need to check to what type of traders the tips are more suitable. For example, you cannot apply the same tips and expect the same returns within the same timeframe while trading cryptocurrency and while trading gold. Moreover, long-term trading methodologies will differ from short-term goals. Hence, make sure that you apply relevant tips that are specific to your kind of trading.
- Apply tips that specific to a particular market – Every market is highly specific. For example, trading in stocks will be different from trading bitcoins or investing in gold. Therefore, you need to evaluate whether the tip you read is applicable in the cryptocurrency trading or only for trading commodities.