How to do a defensive trading strategy?

[BetronParks]

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

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[andriarto]

it is true that the most important thing in trading is good defense. in the sense that we must secure the capital so that it does not run out. As far as I know, before we trade, of course, analyze it, which can also use the help of indicators. I think what a good defense means is when the price doesn't react to the indicator signal then what we do is cut loss, so we don't fall into deep losses

[livingfree]

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%.

[YOSHIE]

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.

[michellee]

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.

[BIN-BIN]

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.

[so98nn]

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.

[defi-Dany]

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

[mk4]

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.

[Ararbermas]

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..

[Yaunfitda]

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.

[palle11]

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.

[semobo]

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.

[Cherylstar86]

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.

[carlfebz2]

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.

[livingfree]

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.

[el kaka22]

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.

[michellee]

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.

[OcTradism]

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.

[Xinarae*]

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.

[teosanru]

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.

[Golftech]

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.

[dothebeats]

Defensive trading strategies are strategies wherein you take less risks and less profits.  It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

[Fatunad]

Defensive trading strategies are strategies wherein you take less risks and less profits.  It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

Less risk but small profits is much more better rather than directly taking big steps but bigger risk unless if you are really that a risk taker mindset and your pocket is ready with that
then its your choice since its your money to be spent at all and in talks of defensive type of trading strategy which is mostly talking particularly on being sustainable in the market.
There are various strategies could be used its neither to be that aggressive or a bit defensive or protective kind of way which its up to someone on which path he would be taking on.
You would find out and discover for yourself about these strats because you cant attain it if you wont try.

[goinmerry]

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.

If I will elaborate on it based on my own understanding, it means a strategy that will minimize your losses in case of a downtrend or settling a profit right away even there's a possibility of going up in case of an uptrend.

In your 2 months of trading, I'm sure you already hear the word stop-loss. Now applying it to yourself, you should plan a certain strategy just in case your holdings are now decreasing the value; will you sell it or just continue to accumulate.

Determining what price will be your stop-loss is basically can only be answered by you. Just continue to do trades and you will be used on it.

[Wawa2013]

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.

If I will elaborate on it based on my own understanding, it means a strategy that will minimize your losses in case of a downtrend or settling a profit right away even there's a possibility of going up in case of an uptrend.

In your 2 months of trading, I'm sure you already hear the word stop-loss. Now applying it to yourself, you should plan a certain strategy just in case your holdings are now decreasing the value; will you sell it or just continue to accumulate.

Determining what price will be your stop-loss is basically can only be answered by you. Just continue to do trades and you will be used on it.

We really have to minimize the losses that we experience when the market suddenly drops, because trading really has to be able to make quick
and right decisions. And by implementing stop-losses in trading, this helps us as traders so as not to experience losses that are not too big.
Stop-loss, in my opinion, can be called a defensive strategy, and we can enter the market again at a lower price when we use stop-loss. I usually
activate stop-loss when the price drops 10%, but that doesn't mean everyone has to be the same as me on stop-loss pricing. Please determine
the price of our respective stop-loss, according to our respective calculations.

[Johnyz]

Defensive trading for are more on planning, analyzing using indicators and making your own strategies. In trading you have to stick with your plan especially on taking profit and your stop loss level because if you become greedy, you'll lose money.

Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.

[OcTradism]

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.

It is rule to invest. Invest with your own money. If you say you are investing but the capital is from loan, you are taking risk and gambling.

The market will never move as you want, and if you borrow money to have capital for investment, how do you make loan repayment on time if the market moves oppositely with what you expect? Even your prediction is inaccurate in a few weeks or few months. You will end with 50% loss if you exit now, example, because of loan repayment calling. Unfortunately and sadly to know, you can complete that investment with 200% profit 6 months later.

It is how the market works and why Hodlers are winners.

You can not be a hodler if you borrow money to invest.

[jostorres]

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.

Can you please explain this in simple words? I like the feeling of your comment but am unable to actually understand what you mean.

If even the market is going downwards, how can we profit? You might be talking about short selling but then there are problems with short selling as you might know.

Anyways, I think a defensive trading strategy might mean working on small profits and avoid doing risky trades. Most of the times people who trade in cryptocurrencies are high-risk-takers because of the volatile market but now that the market is getting more and more stable, maybe these defensive strategies can work.

[lixer]

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.

Defensive trading is a very common word and doesn't actually depict a specific strategy. The defensive strategy might mean a lot of things:

1- Trading only the pairs in crypto which are well known and have a solid market cap.
2- Have a well-planned backup for each trade to go bad.
3- Avoiding the purchase of shit coins.
4- Taking smaller profits like 1-2% from each trade instead of waiting for 100x

There can be many things like that because the term defensive is very subjective but one thing it does tells you is the mode of operation is safety-first approach.

[geegaw]

Defensive trading for are more on planning, analyzing using indicators and making your own strategies. In trading you have to stick with your plan especially on taking profit and your stop loss level because if you become greedy, you'll lose money.

Trading can't be totally learn in just a short period of time, expect to learn trading for a year and once you already master the concept of trading, making money would be more easy for you. Newbies have to learn first before making big trades, this is a first step to your success.

The time to become a trader with the standard conditions does not need to be too long as you say, it can even be shorter but depends a lot on the compliance with the rules as well as the concentration of participants, quite a few people who have taken a few years of time can't equal some people who only need half a year to learn with trading. Talks about defensive style, it shows carefulness and standard calculation down to the smallest numbers, the take profit and stop loss indicator will need to be clearer, even shortened for little profit, instead of breaking even

[wxa7115]

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.

First of all you have some strange links on your post so you may like to delete them, now about your question, a defensive strategy is nothing more but to avoid using leverage and to use a stop loss and always honor it.

That is it, it is not something complex and yet it is important, there are statistics that show that the majority of the traders lose all their capital in less than a year, if a trader can survive the markets during that time and still have most of their capital even if they had lost some they are on their path to success, the point is to survive the difficult times in the market so you can be around when there are good times, and the best way to do this is to trade thinking on preserving your capital at all times more than the profits you can make.

[Lanatsa]

Sustain yourself and trying to minimize the risk as small as possible because if you do end up on this kind of behavior you would definitely know on what you gonna do next.

Experience is the key. Defensive and a little bit mix on being aggressive towards your position and be active on when to get out and when to get in into the market

and this is where knowledge would differ into each person because we do have different levels in terms of intellect and capacities.So outcome ould really differ
to each other.

[DoublerHunter]

Defensive trading strategies are strategies wherein you take less risks and less profits.  It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

^ I also think the same as yous, the defensive trading strategy is that having a stop-loss which is you can minimize your losses and another way is also on spot trading or even the basic one, the buy low and sell high no matter what the time frame. This defensive trading as I understand is that when you trade that is less risk and to ensure that your capital was not easily wipe out. Nevertheless, there are still guarantees that you can do this thing since the crypto market price is being unpredictable.

[Hippocrypto]

Defensive trading strategies are strategies wherein you take less risks and less profits.  It doesn't really equate to much in the long term but if you are quite unsure on the investment that you are taking, then probably taking less risks and less possible profits is the way to go while you're still learning the ropes of the investment that you're taking. You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

^ I also think the same as yous, the defensive trading strategy is that having a stop-loss which is you can minimize your losses and another way is also on spot trading or even the basic one, the buy low and sell high no matter what the time frame. This defensive trading as I understand is that when you trade that is less risk and to ensure that your capital was not easily wipe out. Nevertheless, there are still guarantees that you can do this thing since the crypto market price is being unpredictable.

The unpredictable market give us more hope for our asset, but someday we will realize it's importance. To prevent losing, we should keep holding and don't just dump you coins for non sense. Know you limitations, keep and eye of the market and monitor every fluctuations so you won't miss every updates.

[LUCKMCFLY]

One of the safest defensive strategies is through Stop loss, the market for now is with a lot of uncertainty, I really have a lot of faith that the market will rise, but I don't know when, sometimes the best strategy if you have no idea what it will do. To pass is to be out of the market, because when you start to guess, you cannot leave everything as in gambling and bet on luck, at least this cannot be done here.

The only way I see that being in the market is always in Hodl or as Jesse Livermore did, that each LONG was backed by a Leveraging Short, since this will take advantage of every movement of the market, of course this is pure adrenaline and that it will be you should do based on being an expert for these types of movements.

[palle11]

You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.

[Ryker1]

You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.

Well, I heard so many times this stop-loss strategy --but how you can accurately execute this matter even if we know ourselves that the market is unpredictable in the first place. I think the best defensive move is to use automated tools in trading like a trading bot because it seems you have an advantage because you can do research further while your bot executes on its own by your command. In short, there is on behalf of you that will decide to buy and sell at that point. Makes your trading easier that the manual one.

[CryptopreneurBrainboss]

I encountered this "defensive trading strategy" term from a post in one of the social media platform.

Guess others have done justice to making you understand what the terms is all about. When you defend your trades, you're simply not trying to lose but be very cautious as this can be very challenging and most time when people try not to lose, they end up not profiting because of the volatility of the market.

Your stop loss could cause you profits especially when the market bounces back immediately or almost immediately it touches your stop loss trading price and many times it's the whale manipulating the market to that price knowing there would be many stop losses at that price.

Same goes for the take profit orders, this could cause you future profits but as the saying goes, it's always better to take profit than hoping on future gains and end up losing the profits you already had.

[wahyu wida]

You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.

Well, I heard so many times this stop-loss strategy --but how you can accurately execute this matter even if we know ourselves that the market is unpredictable in the first place. I think the best defensive move is to use automated tools in trading like a trading bot because it seems you have an advantage because you can do research further while your bot executes on its own by your command. In short, there is on behalf of you that will decide to buy and sell at that point. Makes your trading easier that the manual one.

We also have to be careful using bots, because in certain conditions sometimes bots can't work optimally, therefore I think it would be better if we can master manual trading. and I think stoploss is very useful for a profit trader to anticipate a greater risk, so that risk can be adjusted according to our wishes

[Karish2return]

I think it will be better for you to get a less profit but take it. And if you are doing greed and wait for getting more profit then you should be ready for the loss too and even that loss will be more. I think this will be a best strategy that will keep you away from the loss.

[RokokGudangGaram]

I'm trading with just volume, trend line, support and resistance usually my defensive trading strategy is putting a stop loss on the support or probably on resistance, some people doesn't find the stop loss useful but I think it's one of the most useful feature in trading that stop loss really helps me a lot of time.

[lablab03]

Be careful when choosing a coin to trade if you want a defensive trading strategy, and always remember to set stop loss because it's very useful to avoid masive losses, and of course before that always include to your bucket list that learning how to use indicators is the most important things also if you want to trade different crypto in the market. Which never trust on your own skills because when it comes trading "knowledge" is the real key to become successful. Just don't be lazy i suggest because in the future while trading its a big advantage to have enough information than having skills only.

[solitarywolf]

It is a very general rule but hugely important. Never think in a binary way. Trading is about a probability game, so we have to stop thinking that there is something that guarantees defence our money in 100% certainty.

[taufik123]

Defensive trading strategy is a good strategy to secure the profits that we have gotten so as not to get out of the agreed signal.
The best and safest way to carry out a defensive trading strategy is to determine beforehand what percentage of profit to maintain.

Defensive strategies also need balance, Defensive means emotionally not easily tempted by price movements that cause traders to enter the market outside the agreed signal, while being too defensive refers to the fear of excessive losses that will undermine the profits that have been previously obtained.

[Zilon]

The "defensive trading strategy" should be a word coined by a trading tutor or an academy to help it's student get a clear picture of his illustration. Always have in mind that no strategy is %100 realiable. If you need more strategies to add to your trading chat I would suggest you should always back test to ensure the strategy actually works. For the main time develop on price action using the market trend, candle stick and noticing a major turning point in every chat

[SquallLeonhart]

Be careful when choosing a coin to trade if you want a defensive trading strategy, and always remember to set stop loss because it's very useful to avoid masive losses, and of course before that always include to your bucket list that learning how to use indicators is the most important things also if you want to trade different crypto in the market. Which never trust on your own skills because when it comes trading "knowledge" is the real key to become successful. Just don't be lazy i suggest because in the future while trading its a big advantage to have enough information than having skills only.

These are basically the most important things in trading compacted into such a tiny message. I mean everything you have said is basically the route towards being a good trader and unfortunately there are so many people that end up not being able to do anything of like that at all.

I personally would prefer to actually do these but I also understand some people who end up not following this road because they have way too many emotions and sometimes their emotions take over and they make silly moves, I know that sounds silly and why would anyone let their emotions decide on their trading when the numbers are there but unfortunately there are tons of those people out there. I used to be like that too, I had great time thanks to it but I had horrible times as well, I was lucky enough to sell at peak but unlucky enough to sell at bottom, so I do understand them. Thankfully I am doing better now but I get it.

[michellee]

Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

[CryptopreneurBrainboss]

Always have in mind that no strategy is %100 realible. If you need more strategies to add to your trading chat I would suggest you should always back test to ensure the strategy actually works.

The defensive trading strategy isn't new and has been working for centuries even before the introduction of the cryptocurency market, the defensive strategy as the name implies simply means you're protecting yourself and the best way to do that is setting up your take profit or stop loss orders. That way if the market was to move in a direction that won't favour you, the automated orders you have set will come into effect.

The only thing that can make the strategy not to be 100% realible is if the exchange you're using can't handle the volume it's recieving which causes malfunctions regularly. Apart from this, this plan is perfect if you want to play it safe but do understand that, when you okay it safe, you reduced your chances of profiting more form the market.

But since you didn't lose, it could be considered okay for newbie still learning the market. The market can be manipulated at anytime making your automated orders get executed as the whales knows where the stop losses and take profit orders are priced that's one disadvantage about this strategy. The charts can easily review that to you, if you know how to interested what it has to say.

[taufik123]

Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

Defensiveness is securing the profit that we have gotten so as not to be trapped when the price starts to fall. However, if you hold the coin and haven't sold it when there are some profit gaps, until the price drops again, that's a different strategy. it is a holding strategy. Defensively only secure any profit and also see the market situation that does not allow it to go up again. Defensively also requires balance, defensive but not too defensive as I described above.

[michellee]

Maybe the defensive trading strategy is about knowing when we should get out from the market before it is too late. But hold the coin can be a defensive strategy as we do not sell the coin when the price is down instead, we will buy more amount at a low price. But all in all, it is not easy to have a strategy that will always work for the crypto market, as we know that the crypto market will always change from time to time. We can just analyze the market and think about how to make a profit and leave the market for a while.

Defensiveness is securing the profit that we have gotten so as not to be trapped when the price starts to fall. However, if you hold the coin and haven't sold it when there are some profit gaps, until the price drops again, that's a different strategy. it is a holding strategy. Defensively only secure any profit and also see the market situation that does not allow it to go up again. Defensively also requires balance, defensive but not too defensive as I described above.

Securing the profit means you sell the coin when the price is at a high price, which means that you are getting out from the market. Maybe hold can be called a defensiveness as you do not do anything, only hold the coin but you need to accept the risk because the price can go down lower and not take profit at a high price. But we have different defensiveness trading strategy and we create that strategy base on our experience.

[Adorakelv]

We can say for sure that this practice is in order to be able to do it all correctly.

[wxa7115]

You can also consider stop-losses as defensive trading strategy, as you are trying to limit the losses on your capital and trying to save something for your next ventures.

I think this is in fact the most important way of defensive trading because it actually gives the trader another opportunity to try a trade again. This is important for traders, even myself has realized the positive side of stoploss when applied on a trade. It is saviour and a better way to do defensive trading.

Well, I heard so many times this stop-loss strategy --but how you can accurately execute this matter even if we know ourselves that the market is unpredictable in the first place. I think the best defensive move is to use automated tools in trading like a trading bot because it seems you have an advantage because you can do research further while your bot executes on its own by your command. In short, there is on behalf of you that will decide to buy and sell at that point. Makes your trading easier that the manual one.

Bots are great in the sense that they can trade the markets all the time unlike a human and they will make no mistakes and they will not get afraid when the market begins to go down really fast like a human do.

However a bot by itself is not going to be defensive, bots just follow the rules that you give them and if you give them an aggressive trading strategy then that is what they will do, so the only way for bots to be defensive in their nature is if you code it that way.

[checkmatesir]

I will suggest you two things in trading, first one is that you should get even a small profit from the coins whether it is too small but is should be profit and another one is stop loss. You should keep stop loss on the coins to stay away from loss.

[checkmatesir]

I will definitely suggest you to use stop loss for most of the coins which you can't analyzed which will definitely help you and will prevent you from a big loss, i don't say that it will be 100% but at a certain level, which will be beneficial.

[Rengga Jati]

I will definitely suggest you to use stop loss for most of the coins which you can't analyzed which will definitely help you and will prevent you from a big loss, i don't say that it will be 100% but at a certain level, which will be beneficial.

Definitely, stop loss is one of the very important things to set when we are doing trading, moreover, we are a daytrader, IMO.
This is because, especially in futures trading, we can manage how losses we can afford in the trading and it is better to end the loss on a small scale, then turn to another trading to get profits and cover the previous losses. Instead of we have to wait for the coin to rise again which we don't know when it's certainly, and this could make us more loss.

But, back to each trader strategy, sometimes some people don't like this stop loss and prefer to hold coins to rise again. This is more common in Spot Trading.

[btc78]

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.

you have not found in Web because there is no existing things like defensive trading in generally but this is our own desire and willingness to add in our trading activities.

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

Know when to enter and when to exit, never be  greedy and never listen to any one but to your instinct and knowledge only because that is your money.

I would really appreciate those people who will enlighten me regarding this strategy.192.168.0.1 routerlogin 192.168.l.l

But wait , What are these links? why need a router log in?

[Hobo66]

Use the buy low sell high strategy in the crypto market. Hold cryptos for 5-10yrs. Cryptos are becoming more and more integrated into our lives. Some of these alt coins will be gems soon enough. Patience my friend..

[Pamadar]

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 am not sure if "Defensive Trading Strategy" is a fixed term for a particular strategy that gives you fixed guidelines on how to trade. For me this sounds like a more defensive approach and trying to protect any profits you made. The best tool here would be to work with stop loss orders. As soon as the prices rise and you make a decent profit you should put a sell order in place that if prices drop 10-20% you would sell your coin again.

Same from how I see this, defensive means you are protecting both gain and losses,

If you are already familiar with how the market works, setting up stop loss might give you the help that you need,
it will triggered once the numbers beens set. Just have to consider the volatilty of this market and adjust a little with your set buy and sell targets.

[XCANA]

The whole bottom for trading is to make profit either with the use of indicators or which ever strategies you are using. If you are too greedy to go all in or after making 5% you want to wait till it reaches 10% and then later wait till 20% and 30% , in a single move against your position you will loose all your profit if not capital. So, be careful with whatever trading strategies you are using to avoid too much lost.

[justdimin]

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.

Sounds like some fancy termed marketing term hence you may not get any detailed information on this at any corner of this entire internet resources. Do not waste your time. By defensive, we may try to derive a strategy which is not protective against losses but we are already doing that with the help of stop-loss levels hence I am not in favor of developing a strategy which is defensive.

How do i execute a defensive trading strategy? What indicators do I need for it?

So a defensive strategy is a combination of indicators? Then I guess it will be easier to develop one new strategy and will name it as defensive strategy. Not a big deal. If you ask me, I will name it with my initials rather than calling it defensive, lol.

[imstillthebest]

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.

me either its my first time to hear such strat .
i guess this was only a made up term by a random trader but its easy to understand the word  defensive and i think what it means is you need to hodl and play safe rather than be offensive and trade in a volatile market .
what was your playstyle before ? are you a patient person because if not then this strat will be difficult to fit in you .

[LUCKMCFLY]

My defensive strategy is as follows:

1.-I have to do 3 operations.
2.-Trading in medium and long long, this includes that in each operation I must place:
A.-STOP Loss (less than 10%, maximum 8%)
B.-Take Profit (StopLoss * 3, that is, if I risk 8% I should win 24%)
3.-If I lose an operation, I must recover what I lost with the other operation.
4.- If I lose the previous two operations, I must recover what I lost with the last operation and leave the market without losing, but in a neutral balance, if I go out in a better gain, aunqeu is very difficult.

5.- If I lose the 3 operations I must assume my loss, and analyze the market otherwise, because the QEU vision assumed from the market is not correct.

I think this is a good defensive plan, it is the one that I continue, of course if there is another more cash it would be interesting to know it.

[DarkDays]

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%.

A position on a defensive loss is basically making sure that when you get in profit you take that profit or you give yourself a percentage of that profit while still remaining in the market. A good strategy for this is to use a stop loss and only when triggered you'll get your profit otherwise you can stay in the game, and of course, you can increase that profit as you wish. That way you reduce the loss.

[Clavulanic]

If you wanted to defend you money on trading manipulation, don't deal with uncertainty of the market. Just have the options to hodle instead of taking riks on day trading because you may be pressured by the time market goes red in signals. Our very main concern here is our emotions, trading is all about how you handle yourself in times of difficulties you need to overcome all those factors that make you more exhausted during fluctuations.

[Hypnosis00]

The whole bottom for trading is to make profit either with the use of indicators or which ever strategies you are using. If you are too greedy to go all in or after making 5% you want to wait till it reaches 10% and then later wait till 20% and 30% , in a single move against your position you will loose all your profit if not capital. So, be careful with whatever trading strategies you are using to avoid too much lost.

Strategies should be more on your advantage because you are playing in the market with a great weapon, so finding your best strategy is the key to succeed. As per defensive trading, maybe its more on a profit taking strategy and cutting your losses, technically we all have that kind of strategy, we are just different in execution.

Believing our self that we can protect our fund from losing through using effective strategies is good enough. Honestly, if we are too careful in dealing with the market changes and have huge knowledge of the market, I think that was enough to keep our funds intact and even to grow it more.

What it becomes difficult for us and struggling hard to keep our funds safely is because we sometimes drag by our emotions. This is the biggest challenge for everyone and this is the common reason why a trader is committing mistakes leading to worse ends.

[awik p]

The whole bottom for trading is to make profit either with the use of indicators or which ever strategies you are using. If you are too greedy to go all in or after making 5% you want to wait till it reaches 10% and then later wait till 20% and 30% , in a single move against your position you will loose all your profit if not capital. So, be careful with whatever trading strategies you are using to avoid too much lost.

Strategies should be more on your advantage because you are playing in the market with a great weapon, so finding your best strategy is the key to succeed. As per defensive trading, maybe its more on a profit taking strategy and cutting your losses, technically we all have that kind of strategy, we are just different in execution.

Believing our self that we can protect our fund from losing through using effective strategies is good enough. Honestly, if we are too careful in dealing with the market changes and have huge knowledge of the market, I think that was enough to keep our funds intact and even to grow it more.

What it becomes difficult for us and struggling hard to keep our funds safely is because we sometimes drag by our emotions. This is the biggest challenge for everyone and this is the common reason why a trader is committing mistakes leading to worse ends.

Emotions are the biggest challenge to face when trading. to control emotions of course we need real trading practices, so we can feel it, at first even though we already have an analysis and are wrong, sometimes we find it hard to cut losses, and that is the first challenge for traders to keep their emotions in order to be disciplined with analysis

[CryptopreneurBrainboss]

If you wanted to defend you money on trading manipulation, don't deal with uncertainty of the market. Just have the options to hodle instead of taking riks on day trading because you may be pressured by the time market goes red in signals

While this the best of all the defense mechanism against the market still it won't be fun as trading is. The satisfaction that comes from been successful in out smarting the market is what makes trading very eventful to participate in. If you ask for my opinion, I'll always choose investing (holding) over trading but that doesn't mean there's no good in trading. Trading gives you short term profits that holding can't and holding gives you long term profits that trading might not be able to give especially as the market is very unpredictable

If you have the funds, combining both investment technique could be very vital in having a successful time in the industry. For your short term profits, you can get that from trading constantly and using the defensive method highlighted in other comments above to help secure you against any manipulation form the whales or market. Gorbyou long term goal, you get that from your investment holdings.

[wxa7115]

I will definitely suggest you to use stop loss for most of the coins which you can't analyzed which will definitely help you and will prevent you from a big loss, i don't say that it will be 100% but at a certain level, which will be beneficial.

Even if you use a stop loss this is not a guarantee that you are not going to suffer great losses, we must understand that if the coin that you are trading has a very low volume then the coin can crash really quickly, and even if you have a stop loss in place it is likely that you are going to have to sell your coins for a price way lower than that level, producing losses way bigger than what you were expecting.

So if you want to trade defensively not only you have to choose the right tactics you also need to choose the right assets to do so, and in this market there is no better coin to engage in such kind of strategy than bitcoin, it is true that its volatility can be huge but compared to what we can see in the market of altcoins its volatility is many times smaller.

[Bustart]

Defensive trading is all about our emotions, and if we're not strong enough to handle every circumstances that might be arising once you're struggling to come up with sustainable gains. Some traders often become emotional so they're going to be panic. Most important in trading is to keep your coins intact and don't dwell with shorts and quick trader to avoid losing much money.

[eance]

More sophisticated strategies integrates call/put options to hedge the market. This is the most effective way to protect your trades. Stop loss won't work when you need it most.

[Xampeuu]

Defensive trading is all about our emotions, and if we're not strong enough to handle every circumstances that might be arising once you're struggling to come up with sustainable gains. Some traders often become emotional so they're going to be panic. Most important in trading is to keep your coins intact and don't dwell with shorts and quick trader to avoid losing much money.

if in trading we are not stuck short, then do we not use stop losses, even though it is very important to cut losses. I think a good defensive strategy is to cut losses when getting out of the support area. Therefore, if we continue to maintain losses, it could be that our emotions are not maintained and later can panic sell at bigger losses. As traders, of course, we must be able to keep our capital safe, because there are still many opportunities later

[fullhdpixel]

I think a good defensive strategy is to cut losses when getting out of the support area. Therefore, if we continue to maintain losses, it could be that our emotions are not maintained and later can panic sell at bigger losses. As traders, of course, we must be able to keep our capital safe, because there are still many opportunities later

A strategy in defensive manner but beyond stoploss levels? I understand that you are suggesting to keep holding until getting out of support levels which means even stoploss levels fall before that then we need to wait more? I guess it would be too dangerous for our capital. Personally I will not prefer it.

I am always too conscious to go for stoploss so that I will keep my capital ready for next opportunity rather than waiting for markets to bounce back. This is the reason, I guess your way of defensive strategy is not coming under my risk management principles.

[Ziskinberg]

I think a good defensive strategy is to cut losses when getting out of the support area. Therefore, if we continue to maintain losses, it could be that our emotions are not maintained and later can panic sell at bigger losses. As traders, of course, we must be able to keep our capital safe, because there are still many opportunities later

A strategy in defensive manner but beyond stoploss levels? I understand that you are suggesting to keep holding until getting out of support levels which means even stoploss levels fall before that then we need to wait more? I guess it would be too dangerous for our capital. Personally I will not prefer it.

I am always too conscious to go for stoploss so that I will keep my capital ready for next opportunity rather than waiting for markets to bounce back. This is the reason, I guess your way of defensive strategy is not coming under my risk management principles.

Stop loss is commonly used by many traders, quite some didn't and just let the fund stay there waiting for the next pump, and I actually did sometimes just to know what will be the results. I made several trials and I have noticed that stop-loss helps us during the bear reason but not in the bull market. I have lost a few bucks with this study and trials, even though you will think this could be enough and will give a satisfying output but base on my experience, we can never assure that it all be fine. The volatility of the market makes these things happen and so losses are still evident.

[lenovop-70]

My defensive strategy is not to be greedy and put stop loss as small as possible, as long you are patient you will win. About market psychology, you also need to learn and it can be done while doing trading activities. Being a trader is not easy, it takes a lot of time and cost of money to understand and find a comfortable style to make profit.

[BlackFor3st]

The best defensive trading strategy is stop loss I think you can also consider and take profit at the same time in this way if the price pumps and dumps just like a trap at the resistance you have the chance to take profit to it unlike if you don't have take profit also then you miss the chance on having a profit.

[LUCKMCFLY]

Guys I have seen that many talk about Stop Loss, and yes, without a doubt it is a very safe way to operate, but before getting into the technical, do not you think it is better to make a good market diversification plan? Not everything can happen when trading, both BTC, alts, we must also think of a superior strategy, such as Real Estate, investment in the Stock Market.

I was reading an interesting article and it talks about how many can guarantee a great portfolio if those who are investors or traders of the stock market invest at least 15% in BTC it would be successful, and it is like this:

Source: https://ambcrypto.com/after-gold-can-bitcoin-take-on-the-stock-market/

Now, if with a good trading or investment plan we can launch a strategy based on "Stop Loss" and "Take Profit", is it not ideal for a complete portfolio with many stocks from other markets? Wouldn't it be much better to have that kind of diversification in the face of any global eventuality?

[Pethanou]

I think, if you look from this point of view, it, of course, can be counted on.

[Karish2return]

The most important defensive trading strategy i wanna tell you is that you should take a less profit even but is should be profit, never ever you have to be greedy about any coin or any type of profit in trading whether it is small or big doesn't matter, the more there is greed , there will be more chances of getting into loss, so , it will be best for you to take a less profit even getting into loss.

[Rehan Zakir]

Defensive trading means that safer trading in which our assets are safe or not in high risk. Trading is not an easy task. And don't trade with emotions. Place a trade with full analysis that you are placing a trade with the trend of the market. And must place stop loss on your trade. So, it is really helpful for trading.I think these are the things that helps to decide a defensive trading.

[otundebis]

It's seem defensive trading strategy is all about been cautious and guiding effectively your trading capital! This strategy may prevent or cut losses,  but it will definitely restrict ability to make profit as well.  As saying goes, 'nothing ventured nothing gained!' What is trading if you are not taking a calculated risk,  it will get boring!

[Quidat]

It's seem defensive trading strategy is all about been cautious and guiding effectively your trading capital! This strategy may prevent or cut losses,  but it will definitely restrict ability to make profit as well.  As saying goes, 'nothing ventured nothing gained!' What is trading if you are not taking a calculated risk,  it will get boring!

Defensive trading is most likely talking about good risk management on protecting your capital as much as you could basing off with those unexpected events or market conditions because
nothing on this world would really be considering on having a perfect trade or being profitable from time to time. Defensive or whatever what it may call is really meaning of on how
to project yourself on severe losses or making out back up methods on where to avoid much bad trades.This is where people do differs because not all would be experienced
and knowledgeable enough.