Topic: What's the most safest strategy used in trading? (Read 432 times)

There are many tools and indicators that we use in trading, and not all of them need to be used to get earnings. Based on my experience, it is better that we only use one tool indicator, or it can be up to two or three indicators.

But for me, 2 is enough, but most of the time I only use one, and one of the tools I use is the Rsi, and sometimes I follow it with Trendline, but even just the Rsi can get me a profit from the trading activity I do.

Trend following trading often seems easy, because it doesn't require you to do any special research or analysis.  You simply see which direction the market is going and trade in that direction.  But this method is not always beneficial.  When the market trend reverses or something unexpected happens this strategy can also put you at a loss. If you just follow the trend without going deep into the market you may miss important signals that alert you to potential risks or reversals. So you should not neglect market analysis and research even while following the trend.

No strategy is safer with 100% accuracy and that's a truth but I believe the most reliable strategy for me is to only open long trades when market is highly dipped and similarly I only make short trades when market is highly pumped.

I only use Bollinger bands and RSI to find the peak of the market. I know it's not possible to get the exact peak of a pump but with proper understanding of those indicators one can make profitable trades. Of course in shorting stop loss is important to avoid losing money if market goes upward after your trade execution.

Trend is also one of the right strategies, because sometimes when you avoid the trend, you can make more serious trading mistakes. Usually going against the trend is too risky, especially for those who are still beginners. As you said, the trend-following trading strategy is very simple, you can see what trend is happening and take advantage of that moment to trade and hold it and then sell it when you have made a profit.

However, with this trend strategy, you also need to identify the trend correctly in order to profit from it. The way to do this might be by observing the chart and seeing if the market is going down or up. Also see how other traders use this trend in acting according to the ongoing trend. Actually, any strategy is easy to understand, what is difficult is impatience in waiting for the moment and not being able to control emotions.

Sure, it minimizes your losses, but following the trend alone isn't enough for a trader to make profit because if that's the case then all of us would've made profits already because it's very easy to follow the trend. What's hard is when do we see a trend reversal because many are following the trend then making a position hoping that it will go up even higher, but instead went the opposite way and lost money in the end. There's nothing wrong with following the trend, but it isn't as easy as you are saying it here.

Unfortunately, not all traders are patient enough to wait. Long term trader? Just be a long term holder if that's the case. Most of the traders are trading for short term profits.

Learn technical analysis
Focus on 2 or more pairs
Avoid trading low liquidity coins
Learn, learn and learn.

Your right, the article did not identify any strategies used, yet he claims to have the safest technique. We share trading expertise with one another, thus the next time you build a topping, you should explain why, because I didn't see any point you made. You did not share your plan so that we could know you were correct. Because there are many strategies that people use to trade, some of which do not work and lead them to lose money. whether you have told us, we should try yours and see whether he will favour certain people who typically lose and become discouraged about trading.

Trading is not a simple task, it will take a long time before you understand it, and without a mentor to guide you through, you will be discouraged on trading, and with enough knowledge on trading, you will be more experienced and know which strategic will be more favorable for you to trade on, but you can still lose even if you get better strategic that most people are using, because everyone loses on trading because you cannot predict everytime but if you are patient you will enjoy it and achieve your goals.

We do know that there are different types of traders on which they do make use of their own strategies or methods on which they could really be able to apply it into their own trading. Speaking about trend then there would really be those individuals who would be trying out to make some buy and sell into the price basing up on trends on shorter period of time on which on the moment that they do see opportunities then this is the
time that they will really be having applying those strategies. Of course it wont really be that giving that guarantee of success and profitability and this is whats important on which making yourself that being wary
about on the potential risks and not really that making yourself delusional. On the time or moment that you do find yourself having this kind of approach towards trading then you are prone on being desperate.

Trade according into your knowledge and on the time that you are losing trades then try out to re-assess on whats wrong but honestly it is really just that normal that traders will be losing money on which considering on how volatile and unpredictable market is, then it would really be just that so hard for you to resist on cutting loses on the time you are seeing deep red with your portfolio. You should really be that making  yourself
get prepared for whatever conditions or situations that you might be able to face on when it comes into this condition. Never ever make yourself treating up trading to be similar with gambling because
this would really be bringing out that tons of mistakes.

Every traders follows their own different strategies which will be safe and minimize their risks. In my personal safest strategies is first of all i choose a good coin which is looks enough safe for long term, so if after my investment and i will faces losses in short term then i will decide to keep holding for long term, i have no other good alternative safest strategy in trading.

In general and crypto trading or strategies that are often carried out by crypto users, for example: swing trading, daily trading, arbitrage or position trading, the exact way to carry out these activities varies, depending on the trading knowledge they have.

But if you talk about safe trading strategies, from my personal experience, for me the safest is position trading, I can do this strategy in the long term, maybe weekly or monthly, maybe annually.
Where my position strategy is only to maintain my trading position after I buy when my belief in the downtrend analysis has a good impact on me and I just wait for the price to rise in a better direction.

Most traders and investors follow the trend because I think following the trend is the easiest, simplest and most practical choice. But we also have to be very careful in following the trend and the most important thing is experience and also knowing the upcoming and trusted trend and this is very important for beginners to be able to analyze in finding the trend so that it can generate good profits. The trend can determine us to make a purchase in a certain amount and depending on the trend, if you think the trend will generate big profits in a short time you can make a large purchase according to your ability. So trading following the trend is a good choice and will also be profitable, and still all of that must learn from experience because experience makes us better and also profitable.

Trading according to the trend can also expose you to big losses because the market will not always move in the same way. Although there are many who have been able to make some profit using this strategy during bullish periods, this strategy should not be used long time. We often see big declines in the market. If new traders invest following this strategy, they can't hold their emotions in any decline, resulting in huge losses. It can be done if you are an experienced trader. But I think it is safer to hold bitcoins than doing any such trading strategy. In any case, holding Bitcoin will benefit everyone when the market rises to its highest price. Of course, those who do day trading need to change their strategy.

Well, in my own knowledge I have gathered since I started trading, i have come to understand that the number one safest way to trade even from an experience trader or a newbie trader is to utilize a very low leverage or no leverage at all,  because I can confidently say that it's because of high leverage that most traders use that makes them to lose money.

Then talking of following the trend, yea, it's quite good and by doing so, you just have to react to what the market is giving you, not what you think will happen, am saying so because as a retail trader that we are, we don't have the financial power like the crypto whale, to move the market to our favour, so the best way to navigate our way around it is to follow the trend by reacting base on what the market is giving out, that's my own opinion though, I don't know if anyone thinks otherwise.

Yeah, I only mentioned it because I have used it and have had the experience of how helpful it can be. Before now, I used to think that the market movement and volatility of all the trading pairs on the demo account were working based on the previous market trends, but I was wrong. All the trading pairs on the demo account are trading exactly as on the real account. So, if one practices on demo, it makes them make informed decisions on their trade, and after practice, they can utilize the knowledge they have gained there on their real account. 

Honestly, I think the safest strategy is to use the strategy that works for you safely. If that can done, you will be very safe and have no fear of getting liquidated or losing.

Hey your post has me looking for strategy which turns out to be the market trend, it does works as long as there is a buffer between the rock bottom and highest point when you buy or sell. It's really simple thing to do but most of us end up making mistakes at this stage being overwhelmed by the market trend. I would say there are two more strategies without any indicator or signal wherein one can traders less often like only a dozen of time in a year during major fluctuations or they can do multiple trades of smaller profit booking (this can be tideous) but both have worked for me.

What you said can also be more appropriate for OP to understand because a demo account in a trade can also help him to direct so that OP can also get a little knowledge from using the demo account in addition to considerations about more consistent trading pairs on some coins that he likes. Because if there are too many pairs that he has to manage himself, it can also make him not really focus on trading because there are too many things he has to pay attention to at one time.

Following a trend isn't always a good strategy if what you are referring to is trading coins and tokens that are related to a current trend such as AI, etc. A lot of projects tend to misuse these trends, scammers do the same thing as well, they create fake projects with the trends currently circulating in the market to lure in more investors, and investors don't realize that they are investing in a project that is only using the name of a trend but isn't authentic.

A person needs to do a lot of research before they make an investment when trying to follow a trend because you never know, you might get into a project that is fake. What I think is that research-based trading is the best, you don't follow trends, you just research about the most popular cryptocurrencies of the present, you look into them, and trade them only.

Only be consistent with a few trading pair and don't just into new trading pair that you have study the price chart. Don't handle trading like gambling as if it is dependent on luck, don't rely on copy trading when you don't have any proper knowledge about trading and before you employ any new strategy, make sure to always study it on the demo account.

just DCA and disregard the price whenever it dumps, that way you will have peace of mind and also more controlled investing structure.

riding the trend is great but only works when you're so sure the trend hasn't faded yet and the market is quite bullish, otherwise if it's already at around late stage like this where we don't even know what path the market gonna take it's gonna be difficult to do.

I personally always like to catch the bottom of dump as well but using stop loss mechanism to stop from losing all the capital, it works sometime but always remember that it's akin to catching falling knive, definitely risky but still reasonable risks.

The basics, or the core.
For example, in technical analysis, there are supports & resistances or candle stick patterns.
These are the common strategy that you can use which most new in trading started with this kind of strategy because for me, these basics are the core in trading which make you a good and profitable trader.