When you look at the statistics, there is a small fraction of expert traders that are consistently making profit from trades because they understand the markets and have practically learnt how to win every trade. But there is a question on the lips of many watchers of the market. That is if these elite traders hide their losses.
We sampled opinion among traders to understand if these traders are just interested in showing only the winning trades or they are so good at trading that they almost never lose, which is a remote possibility.
According to Bittraffic,
“I really would think they should not show their losses for if they do, that would make them look terrible. They only show their wins because they need to be appreciated by the ones watching them. Of course who wouldn’t want to see himself being praised by thousands of followers who will buy whichever coin is shilled. If anyone shows his loss and then asked by someone why he took it, I suppose he’d mumble to his reply on YouTube live and that’s not good.”
According to him, economic considerations could be the reason why some traders highlight just their winning trades. This is not surprising since they may be interested in gaining approval and admiration of followers and possibly gain more adherents.
It is a known fact that there are some that could be influenced by monetary gratifications to promote specific coins or assets for the owners. The larger the number of followers, the more influence and money the trader could make.
To Boost Confidence
Some traders say that it is necessary to hide losses to avoid demoralizing upcoming and prospective traders. They emphasize that this is done because a trader needs a high level of confidence that they would be successful in their trade before they are emboldened to make them. We can conclude therefore that the drive to motivate followers may be responsible for hiding trade losses.
According to Chrispop, online trading journals that pose as experts may be incurring a lot of losses but choose only to share their winning trades because they want to gain more referrals for the affiliate programs of brokers they promote. Some also render signal services which he said is an indication that such so-called traders may be fraudulent.
“If you are in any paid signals group I want you to think at the following thing: why would a profitable trader spend his time and charge people money to provide them signals? I haven’t met any professional trader that does something like this. I know some which offer trading education, but not signals.”
To Build A Brand
Fear has always been a strong emotion in trading. Expert traders mostly may have mastered this emotion and tend to want to help their trainees do the same. By avoiding broadcasting their losses, they gain the trust of their followers and help them to trade without fear. It is just like presenting your accomplishments on your CV while carefully avoiding failures.
In the quest to build a brand, this is an intentional omission by many traders which could be a thin line between protecting the emotion of the traders and lying to create the impression of professionalism and infallibility as a trader.
The consequence is that the not-so-experienced traders make trades with a false sense of security just because they believe that the expert is infallible. No wonder 75 percent of traders lose their money. This is why good copy trading platforms recommend the right traders to copy to avoid depending on what the trader says.
Why You Need Basic Knowledge
Every industry has its elites, professionals and the pretenders. The latter pose like they know what they are doing while in reality, they actually make most of their profit by making people believe that they are good at what they do.
This is why it is important that every trader and aspiring trader learn how to assess and judge the analysis presented to them by anyone they’re following. Making sense out of the analysis would enable you know if the journal or influencer knows what they are talking about even if they never made their losses public.
This is the view projected by Hugeblack who wrote:
“99% of those “expert traders” are divided into two parts:
– Looking for fame: These are trying to convince as many viewers as possible that they are right and can give you precise expectations so they will not show their failures.
– Scammers: They try to do anything to prove that they are important and therefore force you to pay them money.
Real “expert traders” who discuss the reasons that may lead to the rise or fall of the price, according to specific circumstances and variables, and then give you their personal prediction based on their analysis.
Anyone who says they can predict the price 100% accurately is a scammer.”
With sound knowledge, you can know a good trader. If in doubt, just use a reputable copy trading platform which has records of the performance of every trader and actually helps you follow the best. You can check the platform we recommend here.