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.

I guess it is more on how comfortable you are with your strategy and how you can optimize such strategy to your advantage. As each coin or project is different, there is no such thing as absolute strategy in trading.

The safest for your funds is not to execute a trade if you have no idea about the coin or token. Also, don't go to futures if you are not well-equipped with knowledge and techniques. As it can easily liquidate your position.

If you are just starting, better explore the top alts with long years of existence in trading rather than meme projects. As meme tokens are usually short-lived and quite easy to disappear in the trading market.

There's no such safe way or holy grail strategy on trading. Period.  

Somehow you could really be able to make use the common. Just make it sure that you are really that knowledgeable on how to make use of it .

1. S & R
2. BB
3. EMA
4. RSI
5. MACD
6. FIBONNACI (Optional)
7. A little mix of price actions
8. Check for fundamentals checking up for trends etc.

Dont make yourself believe that there would really be strategies that could give out that assured profits in trading on which this is something
that make you desperate and delusional. Never ever make yourself having that kind of mindset that you would really be easily make money with trading
and having those sure strategies or tools that you could make use of. The main issue for most people is that they do really believe that there are
really those methods or ways that gives out assurance that they could profit out on which this one is very wrong.

I mentioned following the trend as my strategy, to be precise, parabolic SAR, which helps identify trend direction and potential reversals.

I agree with the safer strategy you mentioned; you did not specify what strategy you were talking about. You are asking about a different strategy used by other members here in the forum, and yet you did not say which strategy you use.

So there is no reason for me to tell you what strategy I am using; after all, you know that we have different strategies that we use in our trading activity.

I also use parabolic SAR (stop and Research) it makes trading a lot easier for me in terms of managing risks.
It also helps me identify trend direction an potential reversals..

DCA is quite safe, I use the parabol SRA (stop and Research) to identify trend direction and potential reversals.

The safest one, I think, is the DCA with the frequency that you can afford and continuously enter back into the market in the long run. I believe that is the best way to trade and also ensure that you are looking at the long term and not just the Short term.

In my opinion, that is the best return you could achieve in a trading strategy.

Because I am a day trader and I am used to trading quickly, I think that day trading is the safest way. Because I always set a stop loss in every position I have made. So even though the market experiences a big correction, it doesn't have a big impact on me because my position will be closed automatically at the stop loss point that I made. In fact, because I continue to monitor the market all the time, I am always in an exit position just before a correction occurs. And I have to admit that following trends is the easiest thing to do. But the problem is that we really have to be clever at managing our own risks and emotions. We must not be hasty in taking a position and we must not be too greedy or too afraid. When I get a profit, I will always take it and I'm not used to waiting for the profits I get to become bigger. Because this will only increase the risk taken. I don't know the name of the strategy I used. But I just continued to follow the market flow after I made technical, fundamental and sentimental analysis.

but many say this type of daily trading is the most difficult thing. I think the most difficult thing is not what type of trading we do. But the most difficult thing is controlling our emotions or psychology when we are in the market. because most of those who experience losses are those who cannot control their own feelings and emotions so they ignore the analysis or plans they have made themselves.

Every trader will have their strategy to trade and they will say that is the best strategy for them because that strategy is safe for them. Minimize our losses can be our strategy to trade so that means you needs to have use the money you can afford to lose in trading. My strategy will be like that because I only trade using the money I can affords.

If you following the trend because that is a good strategy for you, that will be no problem because you thinks that you can make a profit from that. But you need to be careful because you will not know when the trend will change and if you are not ready with the change, you can lose your money in trade.

The safest strategy is just buy and hold but this is a very long term trading strategy or simply falls into investing but this is the safest method you can do on a volatile market since you will have paper loss instead realized loss.

Following trend and other trading strategies are good but you can’t consider it as safe due to market volatility. No one can predict when exactly will the price stop dumping or pumping which means every trade is always subjected to high risk in crypto.

Determining support and resistance is one strategy which you can use to safely play the market.

What strategy you are talking about?, it seems you forgot to put the references on your statement. Well if you are not active in the market I guess in spot trading DCA is suitable because you are keep doing an investment even in the dump of the market or what are the current price is because your one goal is to meet for the next all time high but if you are active in market doing futures is ideal of course you keep watching the market every time so why not take gains while watching with the help of your trading strategy you can make gains, this requires more than effort than the use of DCA its all about your knowledge to make trade.

I have seen someone else discuss this strategy. From my understanding, they simply follow strong market trends without trying to predict market moves. Basically they simply react to the market and not try to predict anything. And how they do is this is through the use of technical analysis that makes them understand the market forces and drives in order to know when to enter a trades during the trends. They also make use of trailing stops to lock in their profits once the trade moves in their favour. What it means is that they do not have predefined take profit settings in place. Personally, I feel that it is a high risk and high reward strategy only meant for experienced and profitable traders. I wouldn't recommend this strategy to anyone who is just learning how to trade. I'll like to know your thoughts on this.

I also rely more on following the trend and taking advantage of price drops when I want to buy in large quantities because I still consider it the most beautiful moment in running a trade. And from what you do, it is actually quite good and not wrong at all when you continue to use it in long-term trading, although you also need to know the strategies of others so that you can consider new strategies for yourself too. But as long as you still use what is comfortable and best for your trading so far, I think you don't need to change anything for that.

I also agree that following the trend is an excellent trading strategy to maximize profits and minimize losses. However, apart from following trends, I also quite often use scalping techniques in my crypto trading (daily trading). Because by using this technique I can get even more benefits. Then to maximize possible profits, I like to use chart patterns to do this scalping. Because by looking at and using graphic patterns, market price movements can be more easily predicted. Apart from that, for long-term trading I like to use the DCA technique. Because by using the DCA technique I can manage my financial capital more regularly. However for trading cryptocurrencies that rank slightly lower (in terms of trading volume/market volatility), I prefer to use the Average down strategy. Because using this technique can maximize the worst case scenario, namely if the cryptocurrency I bought experiences a decline. Because cryptocurrencies that have a low volatility rating or market volume are vulnerable to experiencing deep declines. So to minimize this I like to use the Average down technique. Because the average down technique is to buy crypto every time there is a decline. So with this, the risk of loss will definitely be very small.

Oh, okay. Following trends is good. Which indicator are you using for it? I prefer to use SAR nowadays. I use the indicator with BB and RSI but I see the indicator to be more about trends. It is accurate more but sometimes it can help you with BB to know when the market may reverse.

You posted this but I did not see any strategy. If you have any strategy that you are using to trade and making profit from it, then let people know about the strategy than to emphasize on it but not mention it not to talk of explaining it.

Averaging
Low leverage like 0.25
Do not martingale more than 2.5. Or no martingale at all for more volatile coins.
Use not more than 5% of your income to trade
Avoid shit coins.

>>not many would agree that there is a safest way, but indeed they are safe ways to trade in other to minimize your losses.
I've been trading for quite sometime and I've used different strategies in other to make profits, and following the trend been one of them.
I see this strategy as been the most safer, because it minimizes your losses and sure brings you profits, only if you are a patient and long term trader.
But since we're all here  I know many people would have different strategies of their own. Drop a strategy you u think is the most safer and reliable.