Topic: How to do a defensive trading strategy? - page 3. (Read 712 times)
I'm trading with just volume, trend line, support and resistance usually my defensive trading strategy is putting a stop loss on the support or probably on resistance, some people doesn't find the stop loss useful but I think it's one of the most useful feature in trading that stop loss really helps me a lot of time.
I think it will be better for you to get a less profit but take it. And if you are doing greed and wait for getting more profit then you should be ready for the loss too and even that loss will be more. I think this will be a best strategy that will keep you away from the loss.
You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.
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I encountered this "defensive trading strategy" term from a post in one of the social media platform.
Guess others have done justice to making you understand what the terms is all about. When you defend your trades, you're simply not trying to lose but be very cautious as this can be very challenging and most time when people try not to lose, they end up not profiting because of the volatility of the market.
Your stop loss could cause you profits especially when the market bounces back immediately or almost immediately it touches your stop loss trading price and many times it's the whale manipulating the market to that price knowing there would be many stop losses at that price.
Same goes for the take profit orders, this could cause you future profits but as the saying goes, it's always better to take profit than hoping on future gains and end up losing the profits you already had.
You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.
You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.
One of the safest defensive strategies is through Stop loss, the market for now is with a lot of uncertainty, I really have a lot of faith that the market will rise, but I don't know when, sometimes the best strategy if you have no idea what it will do. To pass is to be out of the market, because when you start to guess, you cannot leave everything as in gambling and bet on luck, at least this cannot be done here.
The only way I see that being in the market is always in Hodl or as Jesse Livermore did, that each LONG was backed by a Leveraging Short, since this will take advantage of every movement of the market, of course this is pure adrenaline and that it will be you should do based on being an expert for these types of movements.
The only way I see that being in the market is always in Hodl or as Jesse Livermore did, that each LONG was backed by a Leveraging Short, since this will take advantage of every movement of the market, of course this is pure adrenaline and that it will be you should do based on being an expert for these types of movements.
Defensive trading strategies are strategies wherein you take less risks and less profits. It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
^ I also think the same as yous, the defensive trading strategy is that having a stop-loss which is you can minimize your losses and another way is also on spot trading or even the basic one, the buy low and sell high no matter what the time frame. This defensive trading as I understand is that when you trade that is less risk and to ensure that your capital was not easily wipe out. Nevertheless, there are still guarantees that you can do this thing since the crypto market price is being unpredictable.Defensive trading strategies are strategies wherein you take less risks and less profits. It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
^ I also think the same as yous, the defensive trading strategy is that having a stop-loss which is you can minimize your losses and another way is also on spot trading or even the basic one, the buy low and sell high no matter what the time frame. This defensive trading as I understand is that when you trade that is less risk and to ensure that your capital was not easily wipe out. Nevertheless, there are still guarantees that you can do this thing since the crypto market price is being unpredictable. 
Sustain yourself and trying to minimize the risk as small as possible because if you do end up on this kind of behavior you would definitely know on what you gonna do next.
Experience is the key. Defensive and a little bit mix on being aggressive towards your position and be active on when to get out and when to get in into the market
and this is where knowledge would differ into each person because we do have different levels in terms of intellect and capacities.So outcome ould really differ
to each other.
Experience is the key. Defensive and a little bit mix on being aggressive towards your position and be active on when to get out and when to get in into the market
and this is where knowledge would differ into each person because we do have different levels in terms of intellect and capacities.So outcome ould really differ
to each other.
Hello everyone. This is my first time posting a thread here. I have been trading for already 2 mos. But still learning a lot and building my overall trading strategy.
I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.
I am planning to add this to my overall trading strategy.
How do i execute a defensive trading strategy? What indicators do I need for it? How can i determine the entries and stop losses on such trading strategy
I would really appreciate those people who will enlighten me regarding this strategy.
First of all you have some strange links on your post so you may like to delete them, now about your question, a defensive strategy is nothing more but to avoid using leverage and to use a stop loss and always honor it.I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.
I am planning to add this to my overall trading strategy.
How do i execute a defensive trading strategy? What indicators do I need for it? How can i determine the entries and stop losses on such trading strategy
I would really appreciate those people who will enlighten me regarding this strategy.
That is it, it is not something complex and yet it is important, there are statistics that show that the majority of the traders lose all their capital in less than a year, if a trader can survive the markets during that time and still have most of their capital even if they had lost some they are on their path to success, the point is to survive the difficult times in the market so you can be around when there are good times, and the best way to do this is to trade thinking on preserving your capital at all times more than the profits you can make.
Defensive trading for are more on planning, analyzing using indicators and making your own strategies. In trading you have to stick with your plan especially on taking profit and your stop loss level because if you become greedy, you'll lose money.
Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.
The time to become a trader with the standard conditions does not need to be too long as you say, it can even be shorter but depends a lot on the compliance with the rules as well as the concentration of participants, quite a few people who have taken a few years of time can't equal some people who only need half a year to learn with trading. Talks about defensive style, it shows carefulness and standard calculation down to the smallest numbers, the take profit and stop loss indicator will need to be clearer, even shortened for little profit, instead of breaking even Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.
I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.
Defensive trading is a very common word and doesn't actually depict a specific strategy. The defensive strategy might mean a lot of things:1- Trading only the pairs in crypto which are well known and have a solid market cap.
2- Have a well-planned backup for each trade to go bad.
3- Avoiding the purchase of shit coins.
4- Taking smaller profits like 1-2% from each trade instead of waiting for 100x
There can be many things like that because the term defensive is very subjective but one thing it does tells you is the mode of operation is safety-first approach.
We can always make a profit even if the underlying tendency in the short term to trade defensively is clearly downward. This is because we can use this little strategy in the equity markets for a few euros that will go into our savings account every time this movement is performed positively it is one of the few self defense measures that small and medium investors have had to survive from trying to invest in financial markets. Also it is a strategy that is not overly complicated in its application.
Can you please explain this in simple words? I like the feeling of your comment but am unable to actually understand what you mean.If even the market is going downwards, how can we profit? You might be talking about short selling but then there are problems with short selling as you might know.
Anyways, I think a defensive trading strategy might mean working on small profits and avoid doing risky trades. Most of the times people who trade in cryptocurrencies are high-risk-takers because of the volatile market but now that the market is getting more and more stable, maybe these defensive strategies can work.
You need to allocate spare money for this in order to make sure that in any event or any emergency case
you'll not going to use it, that's the best practice if you wanted to succeed from this business. Every
investors and traders needs to have a concrete plans each time they enter the market, those who
don't have mostly failed and lose their money.
It is rule to invest. Invest with your own money. If you say you are investing but the capital is from loan, you are taking risk and gambling.you'll not going to use it, that's the best practice if you wanted to succeed from this business. Every
investors and traders needs to have a concrete plans each time they enter the market, those who
don't have mostly failed and lose their money.
The market will never move as you want, and if you borrow money to have capital for investment, how do you make loan repayment on time if the market moves oppositely with what you expect? Even your prediction is inaccurate in a few weeks or few months. You will end with 50% loss if you exit now, example, because of loan repayment calling. Unfortunately and sadly to know, you can complete that investment with 200% profit 6 months later.
It is how the market works and why Hodlers are winners.
You can not be a hodler if you borrow money to invest.
Defensive trading for are more on planning, analyzing using indicators and making your own strategies. In trading you have to stick with your plan especially on taking profit and your stop loss level because if you become greedy, you'll lose money.
Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.
Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.
I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.
I am planning to add this to my overall trading strategy.
I am planning to add this to my overall trading strategy.
If I will elaborate on it based on my own understanding, it means a strategy that will minimize your losses in case of a downtrend or settling a profit right away even there's a possibility of going up in case of an uptrend.
In your 2 months of trading, I'm sure you already hear the word stop-loss. Now applying it to yourself, you should plan a certain strategy just in case your holdings are now decreasing the value; will you sell it or just continue to accumulate.
Determining what price will be your stop-loss is basically can only be answered by you. Just continue to do trades and you will be used on it.
We really have to minimize the losses that we experience when the market suddenly drops, because trading really has to be able to make quick
and right decisions. And by implementing stop-losses in trading, this helps us as traders so as not to experience losses that are not too big.
Stop-loss, in my opinion, can be called a defensive strategy, and we can enter the market again at a lower price when we use stop-loss. I usually
activate stop-loss when the price drops 10%, but that doesn't mean everyone has to be the same as me on stop-loss pricing. Please determine
the price of our respective stop-loss, according to our respective calculations.
I encountered this "defensive trading strategy" term from a post in one of the social media platform. I tried searching for it in the web but haven't seen anything.
I am planning to add this to my overall trading strategy.
I am planning to add this to my overall trading strategy.
If I will elaborate on it based on my own understanding, it means a strategy that will minimize your losses in case of a downtrend or settling a profit right away even there's a possibility of going up in case of an uptrend.
In your 2 months of trading, I'm sure you already hear the word stop-loss. Now applying it to yourself, you should plan a certain strategy just in case your holdings are now decreasing the value; will you sell it or just continue to accumulate.
Determining what price will be your stop-loss is basically can only be answered by you. Just continue to do trades and you will be used on it.
Defensive trading strategies are strategies wherein you take less risks and less profits. It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
Less risk but small profits is much more better rather than directly taking big steps but bigger risk unless if you are really that a risk taker mindset and your pocket is ready with thatthen its your choice since its your money to be spent at all and in talks of defensive type of trading strategy which is mostly talking particularly on being sustainable in the market.
There are various strategies could be used its neither to be that aggressive or a bit defensive or protective kind of way which its up to someone on which path he would be taking on.
You would find out and discover for yourself about these strats because you cant attain it if you wont try.
Defensive trading strategies are strategies wherein you take less risks and less profits. It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.
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