Not everyone might agree that there’s a completely safe method, but there definitely are smarter ways to trade that help cut down on losses. I’ve been in the trading game for a while now and tried a bunch of strategies to make some gains, with trend-following being one of them. I consider this strategy to be one of the safest because it really helps minimize losses and can lead to profits, as long as you're patient and thinking long-term.
But since we’re all part of this community, I bet many of you have your own strategies to share. What do you think is the safest and most reliable approach?
What are the safest trading strategies out there?
19 replies 409 views
alex.shardLegendary
Posts: 1019 · Reputation: 5623
#2Oct 20, 2024, 04:22 PM
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.
alex.shardLegendary
Posts: 1019 · Reputation: 5623
#3Oct 21, 2024, 11:04 AM
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.
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.
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.
just_bridgeSenior Member
Posts: 160 · Reputation: 1146
#6Oct 22, 2024, 03:44 PM
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.
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.
humblebossFull Member
Posts: 74 · Reputation: 253
#8Oct 22, 2024, 07:47 PM
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 cant 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.
CalmLedgerSenior Member
Posts: 236 · Reputation: 1270
#9Oct 22, 2024, 09:32 PM
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.
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.
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.
DCA is quite safe, I use the parabol SRA (stop and Research) to identify trend direction and potential reversals.
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..
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 mentioned following the trend as my strategy, to be precise, parabolic SAR, which helps identify trend direction and potential reversals.
wizard2021Member
Posts: 5 · Reputation: 107
#16Oct 26, 2024, 12:16 AM
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.
block_hashFull Member
Posts: 108 · Reputation: 698
#17Oct 26, 2024, 12:26 AM
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.
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.
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.
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.
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