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1. Only use Path-Based Signals (PBS). There is no need to use anything else until you become a far more advanced player, and even then it's mostly unnecessary. Seriously, just pretend the rest do not exist. If you heard from somebody else that path-based signals use more CPU, ignore it, it's not true, it's never been true.
2. The space between two signals is called a block. Always make sure that your block will fit your longest train on that line.
3. Always put a signal where you intend for a train to stop. Always put a signal before any intersection of other rails or road crossings.
4. Never put a signal where you don't want a train to stop. Never put a signal immediately after an intersection. Only place a signal after an intersection if it is far enough away so that your longest train doesn't stop in the intersection and block other trains.
5. Platforms do not have signals built into them. Place a signal if you need it to stop before it enters a platform. Always place a signal going out from the platform, facing inward, to ensure that trains which need to leave the station are prioritized over new incoming trains.
https://www.youtube.com/watch?v=1kcgylFM3y4
I think it would be advisable to take it slow at first to get used to the logic: Only use the basic block and one-way block signals (block signals are the bottom row in the signals toolbar). Start with something simple, like 3 trains going between 2 stations in a loop, and then try 2 loops with 3 stations in the shape of an 8 also with multiple trains. Play around with it until you get it to work.
If you get comfortable with that, only then check out the entry/exit/combo signals, and/or learn how the more versatile path signals work. Once you understand that you won't want to use the normal block signals again (ref kamnet comment above).
Learn what the two types of path signal do, and learn what a "safe waiting point" is.
listen to this guy
Yes, the original game only had block signals and semaphores. TTDPatch introduced the more complex combo signals (pre/entry/exit). OpenTTD introduced path-based signals/semaphores, and brought over the combo signals because they were popular at the time. Patch packs have now also introduced programmable signals for more complex and advanced controls, but for the most part you can do just about anything you want with a PBS.
Thank you :) I only use path signals myself, but I do think it helped me to better understand and reason how to utilize path based signals effectively, having played with the block based signals first. If nothing else, it makes me appreciate path based signals more!