How to do a defensive trading strategy?

[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.

[1714978625]

1714978625

[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