For first-year traders
What a first-year trader should know before using signal software
If you opened your trading account in the last twelve months, you have probably seen charts covered in green and red arrows and wondered whether software can make the decisions for you. It cannot. A signal tool reads price with a fixed formula and marks where that formula says buy or sell. That helps only someone who knows what to do with the levels.
WizeBuySell runs on AmiBroker or TradingView and plots an entry, three targets and a stop-loss for each signal, confirmed when the candle closes. This page tells you what to learn first, what the software will not decide for you, and a slow first-month plan. We would rather you start small and stay than start big and quit.
What a buy or sell signal is, in plain words
A signal is a mark on the chart that says: by this formula's rules, price has just turned up, or down. With it come five numbers. The entry is where the trade begins. T1, T2 and T3 are three prices where you may take profit. The stop-loss is the price at which the idea is treated as wrong and you exit with a small loss.
The signal appears only after the candle has closed, and then it stays. It does not move or disappear later. When price reaches T1, the stop-loss moves to the entry price. When it reaches T2, the stop-loss moves to T1.
A signal is not a forecast and not a recommendation. The formula does not know about news, results or your bank balance. Some signals reach T3. Some go straight to the stop-loss. Nobody, including us, knows in advance which is which.
Eight terms you will meet on day one
One line each. The full glossary on this site explains these and many more.
| Term | Meaning in one line |
|---|---|
| Candle | One bar showing the open, high, low and close of a period |
| Timeframe | The period each candle covers, such as 15 minutes |
| Entry | The price at which the signal says the trade starts |
| Target (T1, T2, T3) | Three prices, each further away, where you can book profit |
| Stop-loss | The exit price that keeps a small loss small |
| Trailing stop-loss | A stop-loss that moves in your favour as targets are hit |
| Repainting | A tool changing or deleting old signals; ours do not |
| Position size | How many shares or lots, worked out from what you can lose |
What you need to know before a tool can help
Software adds speed to a process you already have. If there is no process yet, it adds speed to guessing. Your broker's help pages, the exchanges' investor education material and a fortnight of watching a live chart will cover the basics.
Practise orders with one share of a liquid stock. A wrong order type on one share costs a few rupees. The same mistake on an index futures lot does not. Before paying for any signal tool, ours included, make sure you can do each of these without looking anything up.
- Read a candlestick: open, high, low, close, and what a long wick tells you
- Place a market, a limit and a stop-loss order in your broker's app
- Explain what happens to a stop-loss order when price jumps past it
- Say how your broker's intraday margin and auto square-off work
- Tell cash from futures and options, and know why lot size matters
What the software will not teach or decide
It will not tell you what to trade, how much to buy or when to stay out. It does not place orders; you place every one with your own broker. It plots signals on all 1,240 symbols alike, including ones too illiquid or too large for a small account.
WizeBuySell is not investment advice or a tip service, and we are not SEBI-registered as an Investment Adviser or Research Analyst. Software does not remove risk. Never trade with borrowed money: not a personal loan, not a credit card, not funds meant for rent or fees.
A first-month plan that keeps the tuition fee low
Every trader pays for lessons through losses. The aim of the first month is to make those lessons cheap.
- 01
Take the trial and only watch
Place no trades in the 2-day free trial. Write down each signal's entry, targets and stop-loss, then see what price does. Check next day that the signal still sits on the same candle.
- 02
Paper trade for the first days
Record each signal as if you had taken it, stop-losses included. You will learn how often they come, and how three in a row feels.
- 03
Choose one instrument and one timeframe
One large stock you know, on a 15-minute chart, is enough. Do not switch after a bad day, or you never gather enough trades to judge anything.
- 04
Go live with the smallest size
One share in the cash segment is a real trade with real emotions. Stay there for twenty trades.
- 05
Journal every trade
Date, signal, entry, exit, result, and one line on why you exited. Add a note whenever you broke a rule.
- 06
Review every weekend
Count the rule breaks, not the rupees. If most losses came from trades outside the plan, the fix is discipline, not a different chart.
Four mistakes nearly every first-year trader makes
These are what a normal mind does when money is at stake. That is why they need rules written before the market opens, and not willpower while it is open.
Software can make one of them easier. A scanner across hundreds of symbols always has something flashing. A short watchlist is the cure. If options tempt you, read our option buyers page first; it explains why a correct direction call can still lose.
There is a fifth: judging the tool, or yourself, on five trades. Five trades prove nothing in either direction. The usual four are listed here.
- Moving the stop-loss further away just this once, which turns a planned small loss into an unplanned large one
- Doubling the quantity after a loss to get back to even
- Taking every signal on every symbol, including in sideways markets where signals whipsaw
- Starting with option buying because the premium looks cheap
Questions about Beginners
Can I start using signal software if I know nothing about charts?
You can install it, but it will not help much yet. The software marks entries, targets and stop-losses; it assumes you can read a candle, place a stop-loss order and size a position. It does not teach these. Spend two or three weeks on the basics first.
How much money do I need to begin?
We do not give a figure, because it depends on the instrument and on your broker's margin rules, which change. In the cash segment you can trade a single share, which keeps early mistakes cheap. Whatever the amount, it should be money you can lose without affecting your household, and never borrowed.
Will the software tell me when not to trade?
No. It plots a signal whenever the formula's conditions are met, including in dull sideways markets where signals often fail. Knowing when to sit out is a skill you build from your own journal. A simple start: no trades once your daily loss limit is reached, and none outside your watchlist.
AmiBroker or TradingView: which is easier for a beginner?
TradingView is simpler to begin with. It runs in a browser or the mobile app and works on the free tier. AmiBroker is a Windows program that needs its own licence and a real-time data feed from an authorised vendor; in return you get a watchlist scanner. We install either one remotely in about 20 minutes.
Do beginners make money with buy sell signals?
Some do and many do not, and the difference is rarely the signals. It is position size, holding to the stop-loss and not overtrading. We publish no accuracy percentage and promise no income. Treat the first months as paid education, with the fee kept as low as you can manage.
From the blog
- Buy Sell Signal Software Kya Hota Hai? Kaise Kaam Karta Hai
Signal software price padhta hai aur chart par entry, targets aur stop-loss plot karta hai. What it does, what it does not do, and what to check before you pay for one.