What category does your strategy belong to?

[OsaiEmma]

Hello guys, hope you all are having a great day.

Recently, I observed something about trading strategies. Generally, the market is fundamentally driven by two emotions, greed and fear. Every single trader is driven by these two emotions, and they create their strategies around them.

I group the trading strategies into two, they are:

1) Risk-Averse strategy.
2) Aggressive-growth  strategy.

1. Risk-Averse strategy
This strategy is being driven by traders who are not willing to take too much risk, they are mostly conservative in their trading. They'd rather have multiple confirmations and tight stop losses. They trade thinking of "where will my stop loss be" first before thinking of, "where will my take profit be".

Some advantages are:
A) This strategy is the best  when it comes to preserving your capital.
B) It is ideal for small account traders.

Some disadvantages are:
A) This strategy can often make you miss out on some good opportunities because those opportunities have a bigger stop loss even though the take profit is also huge.
B) While looking for multiple confirmations, you might just miss out on a good setup.

2. Aggressive-growth strategy
This strategy is a high risk high reward strategy. This is adopted by traders who have room to tolerate more risk. Every good trader shouldn't risk more than they can handle, and yes these traders don't necessarily break that rule, but they don't mind stepping into the threshold of it. They tend to want to maximize their profit in every trade, they think of profit first (TP) before looking at their stop loss.

In my opinion, this strategy should be used if you have enough capital.

Advantages:
A) Seize every opportunity spotted.
B) Maximizes take profit.

Disadvantages:
A) Higher risk.
B) Not ideal for small account traders.
C) Can accumulate more losses

So, on your trading journey, what strategy do you often use or prefer? Are you a profit oriented trader (Aggressive-growth strategist), primarily driven by greed? Or, are you a conservative trader (Risk-Averse strategist), primarily driven by fear?

[GreatArkansas]

I'm with 1. Risk-Averse strategy.
I'm just a small-account trader, and I find this more effective for me, as I am not the kind of trader that is aggressive (maybe due to my account size too?)
And most of my other strategies work with this kind too, especially in most of my entries, stop losses, and price targets. This is more preference as a trader.

[Ruttoshi]

Trading is very risky and I think, the disadvantages is higher that the advantages because you will end up in losses in the long run. However, the trader using risk averse strategy wouldn't be affected by much losses because it's clear that he's trading with what he can afford to lose but I don't like using stop loss.

The advice that I do give to traders is not to open to position when you don't understand the market because if you do, it means that you are gambling.

[Oshosondy]

Swing traders are conservative traders that are using the risk-averse strategies, while scalpers and day traders are profit oriented traders (using the agressive growth strategies.

Most scalpers and days traders are losing because of this.

Although there are some scalpers and day traders than can be conservative traders, but they are not common and most of them are also swing traders.

I am both because there are times that I can be greedy and which I do not like.

[jcojci]

I am a Risk-Averse strategy trader because I don't use too big funds to trade and avoid too much risk and always thinking about stop loss position I should place so I can minimize the risk. I feels that the strategy works for me so far although that is not guarantee me to profit but at least, that helps me to minimize the risk.

Trading is difficult and needs experienced, more practices, and also funds and I can't risk much money to trade because I don't have better skills. Just trading if my analysis tells me it is time to enter the market.

[Cointxz]

I’m using risk averse strategy during the time when I’m still active on trading. It’s almost a suicide applying the 2nd strategy on crypto trading that is too volatile even for a short period of time.

There’s a high chance that you will burn first your capital before you can have a decent profit on this strategy if you will ride on every opportunity.

Being on crypto trading for a long time make me realize that a simple holding is more profitable than being active trading.

[Gozie51]

I group the trading strategies into two, they are:

1) Risk-Averse strategy.
.

Some disadvantages are:
A) This strategy can often make you miss out on some good opportunities because those opportunities have a bigger stop loss even though the take profit is also huge.
B) While looking for multiple confirmations, you might just miss out on a good setup.

Yes these two are some of the negatives to being a careful trader in terms of risk management but it is still very much okay when you take the decision to be a little more patient before pulling the trigger. In trading, it is better to not be in a haste rush and lose your money. In other words, not trading is as good as trading because if you don't make losses or profit, you are retaining your funds. So going gradually and sustaining profit is better than making huge profit today and losing same to the market the next day.

[hugeblack]

In fact, you did not provide strategies, but rather an explanation of these strategies without a mechanism for their application. It is easy to say that a trading strategy avoids risk, but yet it incurs losses and is unable to achieve profits, worse than an aggressive-growth strategy.

[I_Anime]

Imo to be a pro trader you have to learn how to balance both , trading itself generally is risky  . But you should always focus on preserving and safe guarding your capital , without it you won't be able to do anything relevant in the market. So first safe guard your capital, you can do this by applying proper risk management, knowing when to apply risk-Averse strategy which best fit when you are not too certain with what's happening in the market ,  and you should also know when to apply the aggressive-growth strategy just as op mentioned.

Balancing both strategy will give you some edge in the market , like they always say "too much of Anything" is bad . So if you focus on Risk-Averse strategy alone it will slow down your growth in the financial market , while if you focus on Aggressive -growth it will attract a lot of losses  , so try to balance them .

[EL MOHA]

I'm with 1. Risk-Averse strategy.
I'm just a small-account trader, and I find this more effective for me, as I am not the kind of trader that is aggressive (maybe due to my account size too?)
And most of my other strategies work with this kind too, especially in most of my entries, stop losses, and price targets. This is more preference as a trader.

This might simply just classify you as a swing trader because it’s mostly them that i usually placed in this category, they want the lowest risk before even considering the profit they would end. The trade swing duration too is very dependent on also factors of how low the risk is. Personally I will say I also sometimes trade in this category, applying low leverage like at most 2% and then holding but the pairs are usually very less volatile with liquidity too like the BTC/USDT pair. This to be is actually a better way for even newbie traders to emulate because it’s actually helps in their psychology training

[OsaiEmma]

Yes these two are some of the negatives to being a careful trader in terms of risk management but it is still very much okay when you take the decision to be a little more patient before pulling the trigger. In trading, it is better to not be in a haste rush and lose your money. In other words, not trading is as good as trading because if you don't make losses or profit, you are retaining your funds. So going gradually and sustaining profit is better than making huge profit today and losing same to the market the next day.

What you're saying is true, but I have missed good opportunities, not maximizing my profit in a profitable setup, even incurred losses, just because of these delays. Honestly, sometimes this can mess with your psyche and might even trigger the FOMO mentality during trading. The trading world is really chaotic.

In fact, you did not provide strategies, but rather an explanation of these strategies without a mechanism for their application. It is easy to say that a trading strategy avoids risk, but yet it incurs losses and is unable to achieve profits, worse than an aggressive-growth strategy.

Well, isn't the post simple and clear? There are numerous strategies but they most often fall under traders being conservative in their entry and exit or aggressively going for profit in their entry and exit. Trading strategy is all about determining when to enter and exit the market, right? This is like the core foundation of it.

[Mpamaegbu]

Generally, the market is fundamentally driven by two emotions, greed and fear.

Yeah, that's so powerful to the extent there's a Fear & Greed & Index app to measure that level of adrenaline pump. Currently, the market is on Greed level 74. That shows excitement in the market. Interest is rapidly returning to the market. FOMO is on now. A few weeks ago it dropped abysmally to below 22. .

1) Risk-Averse strategy.
2) Aggressive-growth  strategy.

A lot of us, expectedly and quite understandably too, will fall into the first category. Apart from the reason of low trading capital that confines a lot of traders in that category, there's that factor of needless fear too. Until traders begin to see trading as, "you mustn't win all trades", the problem of fear won't be conquered. To scale out of this, it's best to only go for A+ setups and then be cautious not to FOMO or chase trades with 1:1. Increase lotsize/leverage but make sure SL is tight with high probability to win on an extended TP, instead of going for large SL and a small TP on a small capital. Otherwise, it will continue to be small wins and big losses.

Some advantages are:
A) This strategy is the best  when it comes to preserving your capital.
B) It is ideal for small account traders.

Preserving capital without making significant wins doesn't matter. It's time wasting.

So, on your trading journey, what strategy do you often use or prefer?

I'm both, depending on the trade I'm taking and the level of probability I see in it.

[cryptoaddictchie]

So, on your trading journey, what strategy do you often use or prefer? Are you a profit oriented trader (Aggressive-growth strategist), primarily driven by greed? Or, are you a conservative trader (Risk-Averse strategist), primarily driven by fear?

I employ 50/50 between these two strategy. I usually have a very conservative profiting via stablecoin farming or staking taking advantage some protocols offering a decent margin of profits. Not literally a trading strat but more on sequence with a deliberately and intentional approach.

While the second one is 50% combination of future trading/ spot and even memecoin degen and investing. But to be honest I like the second one cause mostly of my profits that are huge came with this one.

[Abu-Naim]

1. Risk-Averse strategy
This strategy is being driven by traders who are not willing to take too much risk, they are mostly conservative in their trading. They'd rather have multiple confirmations and tight stop losses. They trade thinking of "where will my stop loss be" first before thinking of, "where will my take profit be".

Some advantages are:
A) This strategy is the best  when it comes to preserving your capital.
B) It is ideal for small account traders.

Some disadvantages are:
A) This strategy can often make you miss out on some good opportunities because those opportunities have a bigger stop loss even though the take profit is also huge.
B) While looking for multiple confirmations, you might just miss out on a good setup.

I still prefer this one because I don’t know how to trade that much, I prefer to use proper risk management, to take profit once I see profit, I don’t usually like maximizing profits because I don’t usually like being greedy because I don’t usually understand how leverage works that much, so I only decide to use small leverage if 5-10% and once I observe and see small profit, I do take the profit and try again in another trade even though most times the price keeps going up after selling, I don’t usually think of leaving it for more profit because if I decide to try it, I do always lose. Therefore, I do always avoid being greedy by using risk management.

[Arenga pinnata]

Hello guys, hope you all are having a great day.

Recently, I observed something about trading strategies. Generally, the market is fundamentally driven by two emotions, greed and fear. Every single trader is driven by these two emotions, and they create their strategies around them.

I group the trading strategies into two, they are:

1) Risk-Averse strategy.
2) Aggressive-growth  strategy.

...

So, on your trading journey, what strategy do you often use or prefer? Are you a profit oriented trader (Aggressive-growth strategist), primarily driven by greed? Or, are you a conservative trader (Risk-Averse strategist), primarily driven by fear?

I prefer to trade with strict risk management, which might be a better fit for the first strategy you mentioned. That’s because I also don’t really like trading too aggressively. In my opinion, small but consistent profits are much better for the growth of my portfolio than trading aggressively with high risk, which could also cause me to incur losses more quickly.

Although you mentioned that the first strategy (the risk-averse strategy) is more suitable for traders with small accounts, I actually think the opposite. In fact, when my capital was still very small, I took a fairly aggressive approach to trading. However, as my capital grew, I became more cautious to protect my capital from shrinking. Besides, with a large capital base, even a profit of just a few percent per day is sufficient.

[Dr.Bitcoin_Strange]

The aggressive growth strategy also mean an aggressive burning of account, I have been maintaining risk averse for a while in one small account I have been trading for weeks now and I have only had a few losses since in started trading that account but I blow one other account last week because I decided to take aggressive risk by following the market momentum. Haven tested the two strategy, I advise going for risk averse because you will have less of trading pressure, since you are not risking high to the extent that your account could be blown. Last week, when I blown that account, I just learned a new lesson about trading, if you are not a momentum trader, just avoid the market when price is moving with big momentum because just 1 candle can wipe out all your previous profits that took days or weeks of compounding.

[henmark]

A lot of us, expectedly and quite understandably too, will fall into the first category. Apart from the reason of low trading capital that confines a lot of traders in that category, there's that factor of needless fear too. Until traders begin to see trading as, "you mustn't win all trades", the problem of fear won't be conquered. To scale out of this, it's best to only go for A+ setups and then be cautious not to FOMO or chase trades with 1:1. Increase lotsize/leverage but make sure SL is tight with high probability to win on an extended TP, instead of going for large SL and a small TP on a small capital. Otherwise, it will continue to be small wins and big losses.

To be fair when you do not have a lot of money, then you have two options ahead of you. First one is to be careful and not trade away it very quickly and be careful means that you are not going to risk much and not earn much, sure you are going to earn very little and it will not make you rich, but slow and steady wins the race applies here as well.

The other one is taking risk, which means that you could do even 200x leverage these days, I have seen one platform offer it, although that means you are going to be liquidated VERY quickly if it doesn't move as soon as you buy it. That is a lot more riskier and if you do not do a good job, then you are going to end up wit ha huge loss or if you do a good job then you will earn a huge amount.

[AVE5]

Recently, I observed something about trading strategies. Generally, the market is fundamentally driven by two emotions, greed and fear. Every single trader is driven by these two emotions, and they create their strategies around them.

Obviously every state of emotions creates its trading strategy that the traders believes it'd bring them success while risk managements is the watchword which every trader's especially those trading with FEAR would always stick by to mitigate losses. Those trading with GREEDs may lost out of the tracks because they want to make bigger profits.
What I'm trying to say here's that whatsoever state of trading emotions that's not accompanied risk management is always at the state of very high risks which could lead to blowing off account balance.
Greeds and Fear is just the formula of trading that we can't entirely avoid but yet while risk management helps to curb the threats.