Straight question for all the traders out there.
There are tons of solid strategies for navigating the market, and your success really hinges on how well you grasp whatever method you pick.
What's your most effective strategy or combo of strategies for trading? Are you all about price action, do you lean on indicators, or are you into that ICT style?
Also, it'd be cool if you could explain why you stick with your current strategy and what other approaches you've tried in the past.
I'm not really a pro trader and just trade when I have some spare time and budget (I'm more of a hodler). Usually I do trader in small timeframe from 5 mins to 1hr and I usually do you price action trading but I found out that I mostly lose in this set up so I tried to add indicators like EMA, Volume and Stochastic RSI. This setup do help me have more good trades than with price action alone, I'm not really a pro trader and I admit that most of the time I'm still losing probably I take profit immediately or just having a bad trade.
Right now I'm doing a 1:3 risk-reward ratio and depends on the my market analysis if it didn't hit a 1:3 reward then I wouldn't enter that trade, this result is a little bit hard since you really need to pay attention to markets and spend time. I'm happy to read other's strategy I think I would be able to pull some good infos and knowledge here.
Just trade good coins like bitcoin. Most other coins are like you are gambling. Use 1x leverage. First do not use all yoir trading funds to trade. Learn about averaging and grid trading.
This is also a good strategy. But I prefer overbought and oversold market. I use RSI, BB to know both. I use indicators definitely but you need to have experience with the indicators and not just follow them blindly.
A quick advise is that some traders say they don't use SL but they keep refunding their account, why... because you won't be there to exit if the price is going against your direction and the volatility can continue then take you out by itself. SL is better on trade whether a small risk or high risk is taking.
Don't over trade. If you over trade you may lose focus if you are losing on a trade because you are going to be off balance with your emotions. This will make you chase back your loses as if you were gambling which will result into more loses.
One trade at a time and as a newbie avoid martingale type of trading. Good luck to you
If you are a daily trader then its best you learn more about trading with indicators and lines, i dont consider trading everyday because im a long term trader while not considering the price and indicators, just getting the quantity of assets i want each time needing to acquire is the best strategy for me, i dont be in a hurry doing that, and i dont panic whenever the price decreases because im sure of getting more quantity at any price.
So, it depends which trader are you, long or short. Once decided, youll eventually know what strategy works for you.
Before mentioning about best trading method, let's consider what you want to trade with?
It's important and I would like to trade Bitcoin, not altcoins. From my experience, I know that even if I made bad trading position with Bitcoin (and with Spot trading), I can hold my position for a long time and wait for profit. It's impossible with altcoins that can die anytime and lose a lot of price in a bear market such as 90% or 99%.
With Bitcoin, I would like to DCA trading for entries and exits. You know, DCA is good strategy for investment but you can apply it for trading too, if you want trade.
Better to trade in Bitcoin and we can take advantage of comparable benefits but also requires good knowledge so as not to experience losses.
If you want to trade in other coines, you should use a low levarge and use small capital to minimize risk.
Trading has a considerable risk if someone does not understand the market structure especially if the futures trading is much more difficult and complicated.
Using indicators may be good but also not always successful and that is why trade is considered quite complicated.
Learn the coins that you want to trade then you will understand how to enter the market to install an entry and even though we are not able to guarantee the profit consistently, but at least we have the view to trade with the coin.
buy high and sell low
no but seriously, the most effective strategy is buy and forget
and be ready for huge dips, have enough cash available to buy the dips even
and to get through those market conditions and trust your research
and your gut feeling that you have made right investment
and wait for it to go up
which is why i don't do intraday, just buy with delivery and hold
I am not really a full-time trader; I trade occasionally. My strategy is quite different from others. Because most of the time I take entry when the market suddenly dumps. Although it's quite risky, because the market may dump more after I buy. But I have confidence that the market will recover after the dump. Unless there is a dump, I don't take entry lately. Because I am pretty busy in real life and can't spend a lot of time on the trading. I am not very experienced or a pro trader; I don't understand many technical things. Just trade according to my strategy as I stated above.
Though I am not experienced in technical analysis, I follow some Telegram channels that are analysing the market. I compare each other and understand the market sentiments. After that, when the market moves down, the coins price becomes cheap. So buy and wait for the market to recover and then tell. Sometimes I need to wait a bit longer, but I don't like to sell at a loss. For that reason, I have been holding a couple of coins still now.
Currently I am using combinations of moving average crossover which provides somehow accurate signals for my swing trading. I tried this strategy for intraday trading but I am not getting good results. I have tested this strategy for more than three months with paper trading and then decided to use in real time and getting good results but only with swing trading and long term holding.
For intraday, I use pivot point strategy. I do get mixed results in my intraday trading still I try to improve it by adding other indicators and I am currently on paper trading for this.
Im not an active day trader so Id just fairly do a buy low sell high scheme. But I did use some indicators forbmy buy and sell as it helps me identify a clear entry or good one when I execute my trades. Its not an easy task cause sometimes you entry has been overturn and you got red lining on your port but thats fine dont panic sell like most all do and just wait for the right exit.
Trading in the markets doesn't have to be full-time, as all traders need a break, even if only for a short time, before returning to the market. However, when it comes to strategy, some traders prefer to look for specific moments or moments when the market is particularly favorable for them to enter and buy something for short-term profits. When market conditions are particularly unfavorable, that's when traders will set their nets at the bottom of the range for coins they've frequently purchased in the past. So, observing price movement with the use of indicators can usually be combined to help us know when to enter and exit the market.
If your meaning of not been a pro trader is basically because you still lose to the market then I can say it is not like that, there is absolutely no trader that can actually avoid loss in the market, no trader is immune to losing to the market.
I think your trading pattern due to time frame is what is called the scalpers and they basically use the short term frame to enter the market and price action or using indicators are the best strategy for this type of the market, strategies like SMC or CPI are usually for swinger traders which is what I do most.
Seriously I prefer the same risk management as yours 1:3 R-R is my preferred option anything below that say 1:2 isnt a thing for me. The 1:3 risk management makes me break even at exactly 100% profit. So when move my stop loss to a profit level I hardly leave the market except it TP. Also my position size is mostly determined by my stop loss, my stop loss is always at a price I can afford lose.
Also I dont do revenge trading rather after every loss i simply just backtest my strategy to see if it was from my end or just the market volatility
I want to believe you are talking about bitcoin, even though you didn't explicitly mention, if it is bitcoin, then you are correct; i am a long term bitcoin investor, so i just buy and hodl for the long time while i also accumulate along the way. But if you have other coins in mind other than bitcoin, then i'd not advise this, altcoins are very risky and you better not buy them and forget it, lol.
That said, i am pretty sure this does not help OP because he is an active trader, i don't know of any strategy that would help you get profit in trading and i can only advise on hodling bitcoin which i think is better than trading.
All trading strategies are effective; however, it depends on when you apply it on your trade.
If there's always an effective strategy at any time, trading is like walking in a park now.
Found the right timing, that's the challenge. There's really a time that you need to test several strategies to won a certain trade.
If it is bitcoin, it is not that risky, just make sure you determine not to sell so far it is not bear market time. But if bear market will come, it can be very risky and we are getting close to the time. Yet we do not know if the dump will be much because of how bitcoin has been adopted and well known to the governments itf many countries and many institutions are buying.
This is highly wrong.
It's easy to say and hard to do... that's the theory.
So don't trade, just invest is much better and don't bother thinking about a lot of strategies like trading, if investing just buy and forget... keep doing it the same way with DCA accumulation.
Now don't focus on trading, but accumulating is better.
Most effective strategy for me is to go for solid coin like Bitcoin for your trading and always trade with a small amount of money, this way you lower your risks in multiple ways and also secure at least some level of profits no matter how low it may be, trading is all about consistency and as long as you can mentain your balance with low bankroll you should be good to go.
I've experienced a lot of mess up with my trades and in the end, I've just learned one effective strategy which is mentioned by everyone. That is to simply HODL and accumulate (DCA). You'll never go wrong with this strategy and even you add up some other technicalities of it as long as the choice you've picked is a good and definitely start it out with BTC. You'll even beat the majority of the traders who have been in spot and in the futures. Believe us, you'll be more fruitful and productive on it but no one stops you for learning more strategies that might click to your risk assertions.
Let's talk about this with a healthy discussion. May I know why it's wrong for you?
It won't be called a trading strategy in the first place if it's not a strategy after all. That's my take.