P&D signals on Telegram are a total scam. Think about how it must operate and you’ll realize there’s no real way you can be truly successful in these groups even with a bot trained to take advantage.
The ring leader picks the coin and what he picks is seemingly random, but he’s picking to coincide with news, hype, FOMO, FUD, etc… When he picks, he doesn’t just tell everyone. He first buys into the coin and then sets up several sell orders at whatever levels he feels he can push it. Let’s say +20%. He then writes up something plausible with fake targets that go well beyond his 20% sell order. So he’s set to make a profit, like setting a mouse trap and baiting it.
The ring leader has perhaps 5 to 10 trusted lieutenants that he relays what coin is coming and the time of the pump. These are the folks that are doing the active recruitment to get about 100 or more followers each. These guys are running the the “paid channels” you might buy into on top of a huge number of “free signal” channels meant to snag folks into signing up for the paid channels. The lieutenants, like the ring leader buy in and set their own sell orders and have plenty of time to do it as well since they’re the inner most circle.
I’ve never joined the paid channels so I don’t know what goes on inside those, but just judging by all the cross-promotions I saw in telegram groups, I’d say all the people in the paid channels are taught how to run their own telegram recruiting efforts to bring people to the paid channel. Many of them do. Many of them themselves try to act as they’re ring-leaders picking the coin and repeat the pattern.
Gives you a whole 'nuther perspective on “multi-level marketing” doesn’t it?
Also, don’t go falling for the latest FAD: Pump and HODL groups…“the legit” or “feel good” groups. That’s just even more praying on those who want to “participate” but don’t like the “dump” part. The followers there think they’re signing on to buy coins worth holding, but the dirty little secret is that these signal groups are getting the SAME calls as the other signal groups. Simply don’t fall for any of this feel good garbage.
So bottom line, it’s Russian dolls and you don’t have a clue how many rings away from core you are. But one thing is for sure, the bigger the outer Russian doll, the bigger the price action.
Now here comes the worst part. At first, most people did all this manually. Before, there wasn’t all that much automation amongst the participants in these P&D groups, so the spikes and eventual falls on price action was longer-lived. Now it’s all automated with bots on telegram AND bots on the exchanges. Not to mention, several P&D are run on the same coin as others are watching the action and then repeating the process in a more sinister way. These guys are clever. They see a pump happen on some coin and retroactively make it their call by announcing the same coin to their followers, but change the buy-in levels and targets. To make matters worse, they report the aftermath results as though they made the calls from before the very first pump to convince you to join their paid signals group. Check this chart out. Four P&D on the same coin in 24 hours:
BOTTOM LINE: Forget P&D groups and signal groups on Telegram. It’s one big bag of fat lies on top of more big fat lies designed to make the organizers rich and ruthlessly take your satoshis in the process.
On the other hand…if you develop your charting and TA skills to find trading opportunities, then you can use P&D signals the way I do: as another data point in your decision making on whether to invest in a coin. That is, see what’s being pumped and correlate back to news, hype, etc. against the coin in the P&D cross-hairs to decide whether current trends you’re witnesses is a P&D action underway, or if it’s a true, authentic breakout worth. More than once, I stopped myself entering into a position on some coin because I realized it was a P&D and not a true breakout from a Bull Flag or Pennant or Wedge.