How to do a defensive trading strategy? - page 4.

Golftech

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Quote from: OcTradism on July 16, 2021, 09:12:34 AM

Defense means protection on your capital.

It does relate to cut loss.
One of the Best Weapons in Trading
BUY & HODL - is the surest strategy for crypto beginners
[GUIDE] Who are Professional Traders?

If you are not (at least you feel so) professional trader, buy and hodl is best strategy for you. However, you need to apply this strategy with your own money that you won't touch in a few years.

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.

teosanru

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

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.192.168.0.1 routerlogin 192.168.l.l

There is no single such strategy. Defensive strategy is a strategy where your risk reward is more than 2:1 and the probability of your trading being positive comes out atleast 70% in back testing. One such strategy is buying the dips. Yes this may sound very idiotic and novice but it's a good strategy. If the current market sentiment is bullish and you see signs of some early bearishness, like a bearish divergence on RSI or price action showing bearish signs, instead of shorting, place a buy order at the recent support and just forget about it. If the market falls swiftly your buy order will be struck but when market recovers back you will be able to sell it at profit.

But if the market is falling slowly, take out your order and put it on next support because chances are it'll not retrace quickly in such situations. Similarly when market sentiment is bearish, keep your shorts on the next resistance and do the same thing on shorting side. This is a good defensive strategy and you don't need to have a big stop loss because you are buying/ selling at support and resistances.

Xinarae*

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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.

OcTradism

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Defense means protection on your capital.

It does relate to cut loss.
One of the Best Weapons in Trading
BUY & HODL - is the surest strategy for crypto beginners
[GUIDE] Who are Professional Traders?

If you are not (at least you feel so) professional trader, buy and hodl is best strategy for you. However, you need to apply this strategy with your own money that you won't touch in a few years.

michellee

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Quote from: livingfree on July 15, 2021, 07:13:38 PM

Quote from: michellee on July 14, 2021, 06:34:20 AM

Quote from: livingfree on July 14, 2021, 03:12:15 AM

In summary, that's just all about cutting your loss.

Defensive in all of your trades and in taking profits, you're not that greedy at all. With some few percentage of profits 5%-10%.

You're already taking profits or even less than 5%.

It is better to take profits 5%-10% than nothing, especially if the price is unpredicted. Cutting loss can help us prevent bigger losses, but that will not always work as the price can directly bounce to the high price and sometimes, the price can increase more than the price you see before.

But I am not sure about the indicator as there are many things that the beginner should learn and I do not think they can understand in a short time unless they have a gift in trading to be familiar with one learning.

That's better because you get the profit than to get losses instead of nothing. The prices for all of the cryptocurrencies excluding the stable coins are always unpredictable.

You get to see them play day by day and you will not be sure if they'll stay on those prices for a very long time but most likely, they won't.

Yes, I prefer to make a small profit but can do that many times. As long as we can buy low and sell high, we will have that chance and in the end, we will make a profit.

Hopefully, they will know what they need to do related to the current market situations and they can survive in any situation.

el kaka22

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I would say it is mainly about stop loss I assume. When you have a stop loss it is hard to lose too much when the price goes down because you are already prepared for a big drop, that is what I think will happen. I am not saying that stop loss is the only way to trade, there are people who are long term like me and they do not make a trade with stop loss ready there in case the price drops.

I just do whatever I want and then I end up holding things for very long term. Which is why I think it is quite understandable that we should not be really getting into crypto in the sense that there is one correct way to trade, do it however you want and as long as you are happy with the results that means you are doing the right thing. What I really can't stress enough how important is that defensive means that you will have to be quick to find the bottom after stop loss is hit, that is very crucial.

livingfree

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Quote from: michellee on July 14, 2021, 06:34:20 AM

Quote from: livingfree on July 14, 2021, 03:12:15 AM

In summary, that's just all about cutting your loss.

Defensive in all of your trades and in taking profits, you're not that greedy at all. With some few percentage of profits 5%-10%.

You're already taking profits or even less than 5%.

It is better to take profits 5%-10% than nothing, especially if the price is unpredicted. Cutting loss can help us prevent bigger losses, but that will not always work as the price can directly bounce to the high price and sometimes, the price can increase more than the price you see before.

But I am not sure about the indicator as there are many things that the beginner should learn and I do not think they can understand in a short time unless they have a gift in trading to be familiar with one learning.

That's better because you get the profit than to get losses instead of nothing. The prices for all of the cryptocurrencies excluding the stable coins are always unpredictable.

You get to see them play day by day and you will not be sure if they'll stay on those prices for a very long time but most likely, they won't.

carlfebz2

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Defensive strategy is mostly talks about risk management on how you do protect out your profits and remain sustainability.Technicals might not really be that precise

but this is commonly being used by traders to learn up in terms of trends and possible entries and exits on price and you would be the one to determine those things.
You are the ones who would make out strategies combining technical and fundamental analysis and there are lots of things you would need to read up

and of course experience should be your main priority.

Cherylstar86

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I am trading without any tools that allows me to determine when or how my profit will exist. What I am about to be defensive of, is the protection of my capital so I keep my buying powers ready by the time my projected coins that went down will commence. If I seen an opportunity to buy while saturating market is there, I take action quickly and don't rely with other people's advice. Though I also read their suggestions but I don't follow all of them, some points will be useful somehow which technically be applied.

semobo

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

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.

Defensive strategy is nothing but avoid risks as much as you can this maybe found in lot of alternative threads in the bitcointalk. In simple words, use stop loss as much as you can so you can avoid sudden market movements.

And managing your capital is important thing and more longer you choose to trade then more you can avoid risk.

palle11

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Defensive is the sense that you don't regret a trade you enter. Therefore to be defensive is to properly guide yourself against the volatile market. These factors are important:

1. Money management
2. Stop loss
3. Your emotion and market psychology
If you apply these factors, you can start making more profit than losses. Money management is to take adequate risk for your account size and not to be greedy for gains. Again you do not need for force the market or assume direction will go your way.

Yaunfitda

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Just the usual indicators to look at, but as others have pointed out, it's more on the stop-lost that you are going to set-up. It will be very tight, and the profit of market is slim, because being a defensive trader, a profit of 10% is already huge. But you have to remember that it's not prone to lost as well, you are just mitigating the risk to low. This could be good if you are starting to be a trader and learn the trick and tips along the way.

Ararbermas

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In trading we only have stop loss to use in order to protect our money from the volatility wherein there's no specific indicators for it because it can be use only to identify the movement of growth rate in the graph and gives sign where you can set buy and sell. If i were you learn how to execute stop loss properly, infact there's a different ways how to use it like what i saw in youtube.. So must check it because it's very useful also..

mk4

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Like others have said, defensive trading is pretty much mostly having really really tight stop-losses and take-profits. Of course, both being really tight also means that you can miss out on more update when longing, and missing out on more downside when shorting. But then again, the plan is to be defensive in the first place.

defi-Dany

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Simply put, to set profit / loss and enforce it strictly.

so98nn

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Quote from: YOSHIE on July 14, 2021, 04:28:21 AM

Quote from: BetronParks on July 14, 2021, 01:44:16 AM

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.

[…]
Play It Safe: A Defensive Trading Strategy for 2021

Bitcoin bloodbath highlights these defensive cryptocurrency strategies

So, you can learn it yourself in the article above.

The articles are good however the first one just talks about defensive technique is helping big bulls from preventing the losses in their large volume trades.
What is learn is, you have to play smart with stop-loss buttons. Based on how much money is at stake and how much loss you can bear in “%” or “$$” valuation needs to be defined.

You will not need to worry about the red side or bloodbath if you really can control your emotions on the selling side of trade. That will defend your huge losses.

BIN-BIN

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Learn to manually take profits and also set a stop to lose timer when necessary in this way your defense will be accurate and if you don't get too greedy then this strategy will work for you, let say 7% to 15% gain is ok.

michellee

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Quote from: livingfree on July 14, 2021, 03:12:15 AM

In summary, that's just all about cutting your loss.

Defensive in all of your trades and in taking profits, you're not that greedy at all. With some few percentage of profits 5%-10%.

You're already taking profits or even less than 5%.

It is better to take profits 5%-10% than nothing, especially if the price is unpredicted. Cutting loss can help us prevent bigger losses, but that will not always work as the price can directly bounce to the high price and sometimes, the price can increase more than the price you see before.

But I am not sure about the indicator as there are many things that the beginner should learn and I do not think they can understand in a short time unless they have a gift in trading to be familiar with one learning.

YOSHIE

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Quote from: BetronParks on July 14, 2021, 01:44:16 AM

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.

The following two articles will show you how to improve your 'defensive trading strategy'. If explained in detail, it takes time and a one-page write-up in this thread.

Play It Safe: A Defensive Trading Strategy for 2021

Bitcoin bloodbath highlights these defensive cryptocurrency strategies

So, you can learn it yourself in the article above.

livingfree

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In summary, that's just all about cutting your loss.

Defensive in all of your trades and in taking profits, you're not that greedy at all. With some few percentage of profits 5%-10%.

You're already taking profits or even less than 5%.

Topic: How to do a defensive trading strategy? - page 4. (Read 712 times)