What category does your strategy belong to?

[Charles-Tim]

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.

This is what many traders will never understand. Some traders are even better, collecting good salary, but they are under the slavery of trading. Trading will let them think they can make more, but they are losing more. Saving little by little is better than looking for fast money and losing all the money you have . This is what I have understood about trading.

[Lida93]

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.

People that wants to trade makes a big mistake of pressing too hard towards making profit but with little attention to how best they can be able to preserve their capital also while trading for profit. There has to be some balance on the scale, unfortunately, every strategy is mostly about the making of profit, risk management doesn't receive attention that much that's why it looks like there's a huge disadvantage for traders.

And yea, opening a position for the sake of it instead of out of clear analytical understanding of the trend is something all traders should avoid. Trading against the market trend is another mistake made by some traders, it's as though they're testing their luck on the market.

[TastyChillySauce00]

I traded altcoins with risk averse strategy, only buy when it's really low and make profit even though you'd need to wait for a long time until the market becomes undervalued. For example is ETH at $1700 and SOL at $70. It feels great and its not as mentally exhausting as being aggressive.

I even have a shred of doubt that those who trade aggressively are really making money, most of them profit big and then lose big, it's like running at the same spot, you're going nowhere with that unless you hit a jackpot that only 1 in 100,000 can do.

[OsaiEmma]

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

It's really not easy to be able to employe both strategy in your trading. It requires real experience and understanding of the market to be able to do so. Nice 1 ser.

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.

This is 1 sophisticated setup. True, staking doesn't usually yield much (although this is not trading, but I understand where you're driving at), and while futures/spot can yield huge profit in just a short time, it can do the opposite too in just a short time.

~snip
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.

Don't get me wrong, both setup do have their fair share of risk management, but for the sake of profit, the second might stretch that risk more than the first. The both strategies are dependent more on the state of mind and capital than any other factor.

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 am of the conservative trader and I’m not moved most of the time to try to up my risk when I see good trades. Sticking to the rule is the best while growing your portfolio gradually. I won’t say that I haven’t taking some more aggressive risks in the past before, but they always end up not giving me the result I want based on my assumption of the direction of the market or the limited capital that wouldn’t allow me to try again when the opportunity is still active.

This is some next level discipline, just as they always say, "nothing beats experience". Keeping straight to your strategy is something most traders won't do. The market is ever changing and yes, sometimes each setup requires a different mindset and thinking, and as you mentioned too, your account size matters. Anyways, nice remaining disciplined in your trading journey, that's a sign of a good trader.

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.

This is what many traders will never understand. Some traders are even better, collecting good salary, but they are under the slavery of trading. Trading will let them think they can make more, but they are losing more. Saving little by little is better than looking for fast money and losing all the money you have . This is what I have understood about trading.

You'll be surprised to know that there are a lot of traders making good money from the market. If you have enough capital while trading, you'll see the sweetness and profitability of trading.

[Charles-Tim]

You'll be surprised to know that there are a lot of traders making good money from the market. If you have enough capital while trading, you'll see the sweetness and profitability of trading.

What about people that have huge amount of money that it was trading that took all from them? With what I have read, heard and know about before, what is very close to gambling when discussing about losing money is trading. There are many people that think trading will profit them, but they were losing instead.

[#CapsLOck]

I believe there's not such a difference between these two methods other than the amount of risk that a trader is willing to take on the risk of each trade. With a large account, a trader may be very conservative by only risking a small percentage on each trade; the small trader, on the other hand, may be highly aggressive by using excessive leverage. I also would not consider a wider stop loss to be an aggressive strategy. The actual risk to the account can be kept in check if the position size is adjusted accordingly. For me, rather than how much money I can earn off of one trade, I ask myself if I can take that loss and still stick to my strategy for the next trade.

[Peanutswar]

Seems in at the category of Risk-Averse strategy currently im a swing trader and most of the trades requires a confirmation in the market and I will not make a risk move yet because I have my own strategy right now in the market, priority will be DCA for the next halving and the capital will be use in the next coming event in the market such as possible new trends and opportunity like we used before NFT, and P2E games so to have an early access you need a capital. This strategy works to me for a couple of cycle so as long it works ill do it.

[Futurexxx]

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.

As a trader that really wants to succeed in trading, you must be willing to do away with emotions like fear and greed, because without taming them, you can never be profitable even though you have the required knowledge and skills in trading, because at a point fear will make you start doubting yourself or your analysis which will make you pull the plug when you shouldn't have, so it's very important to master your emotions because without having self control, their is no way you can be a profitable trader.

Knowing how to manage your risk plays an important role in keeping you alive in the market, because if you cannot manage your risk properly, you will use a week to make $1k and use a single hour to lose everything including your initial margin, so a proper risk management strategy is what keeps you alive and active in the market.

[OsaiEmma]

You'll be surprised to know that there are a lot of traders making good money from the market. If you have enough capital while trading, you'll see the sweetness and profitability of trading.

What about people that have huge amount of money that it was trading that took all from them? With what I have read, heard and know about before, what is very close to gambling when discussing about losing money is trading. There are many people that think trading will profit them, but they were losing instead.

You're right sir, a lot of traders have lost huge capital in trading, but there is also the other side of the coin. I've heard of, and seen some traders who are making it big in trading. One thing I observed they all had in common was adequate risk capital. Yeah, experience is there too, but I strongly believe that, experience without big enough capital will still yield losses in trading.

Those traders with large amount of capital that blew up their accounts are mostly due to lack of experience and poor strategy, sometimes, it's just bad luck. Whether we want to admit it or not, we do need some level of luck to succeed - I would've said "Grace", but I don't want to sound too religious.

[TheUltraElite]

I think following a method to avoid the risks is what is better to do. Trading is all about juggling the risks and still making a decent profit or keeping the balance.

You can be a day trader or a long term trader, eventually your problems will converge towards having to buy at the low and sell at the high if you are doing it correctly. This applies minimum risk, cushioned by the time factor that remains between the buy-sell pair.

I have my own method to tide through trading waves. I buy at multiple levels when the dropping, but this also means waiting till a drop happens. Then sell it at corresponding multiple levels, which again needs time to reach and pain to endure through if the price does not come back up quickly.

[Hatchy]

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

Although this doesn't say much about the actual strategy's, but i'll stay on point. Traders can use both approaches because being flexible is important. The market is very dynamic, and as price action changes, you also need to be able to adapt...There are times when you need to be aggressive as a trader and other times when you need to be more conservative. This doesn't mean you lack discipline, it simply means you are trading what the market is offering..Sometimes, you will come across setups that require larger stop-losses, and you may notice that the risk to reward ratio is much smaller than what you normally trade. Those are the situations where you can apply a more conservative approach..You should wait for strong confirmation before entering the trade so you can keep your risk small. Being flexible as a trader is a big advantage.

[danherbias07]

I believe I belong to the first choice.
Risk-averse strategy.

First, it's because I use only small amounts, and I like monitoring it and not using any settings to automate the trade. Second, I love preserving the money and trying to prolong the battle with just minimal profits. Keep it safe.
Finally, it's because I can move on to whatever the next thing will be. If suddenly a jump in the price of what I am trading happens, then I will just close my eyes and take it as a mistake that usually happens to every trader.
The problem with waiting for so long and trying to maximize the profits is that it can be addictive. The next trade you make might end up the same way, and the probability of going south can happen. Risky and can be habitual. Well, it all depends on the capability and capacity of the trader.

[LogitechMouse]

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".

I think this is the one that describes me the most compared to the second one, but there are some changes to it. I'm not exactly the trader that has this kind of strategy though.

I have this strategy where I just need to see 1-2 confirmations and when I see it, I immediately enter a position. As for the risk, I'm risking around 1-2% of my total capital currently, and I'm not thinking of my SL first, but I'm thinking more on how can I make money from those trades. I mean is there any traders out there who prioritizes stop-losses first than those take-profit targets? I'm not that type of trader. I'm not the type of trader also who are trying to maximize profits. Right now, I'm on an experimental phase where I'm focusing on 1:1 Risk to reward ratio, and so far, it has been good, and my win-rate is quite high. That kind of strategy prioritizes lowering the risk rather than maximizing the supposed profits that you can get.

[Rruchi man]

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 refuse to agree that every trader is either driven by fear or by greed. There are traders who may have had their strategies built around fear or greed earlier when they started trading, but with experience, they have come to a point where they now have a strategy built from balance, a place of zero emotion, not fear, not greed, just strategy based on strong principles.

These sorts of traders are few, hence the reason the number of consistently successful traders is so small.

[Pandorak]

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.

I personally have two trading accounts, i refer to them as the “big account” and “small account”.

The small account is for SCALPING, but the difference here is that i’m more active in opening positions aggressively, since the goal is to grow the account, the risks taken are naturally greater, as positions are opened and closed within a relatively short timeframe.

The large account is for SWING, i often open a position only once a week or even once every two weeks, depending on the volatility of the asset being traded. Here, i also pay closer attention to risk management and weigh my options more carefully before opening a position.

It all comes down to each of us. Always use a method that feels comfortable for you, don't just follow what everyone else is doing, because what works for others may not necessarily work for you. It’s better to use your own method.

[Slow death]

In my case, I use strategy 1, and it has worked very well for me so far. I prefer to trade using 4-hour candles, and when I buy, I place a stop-loss that doesn't cause me to lose too much. When the price rises a little, I move the stop-loss to a point where I start to make a profit if it's triggered, and I do this as the price continues to rise. I prefer to look at the monthly profit because that way my profit is higher. For example, I bought Bitcoin for $68,000 and waited for the price to rise significantly to sell when it reached $81,000.



I'm not a professional trader, but I've been trading this way for years and it works. Now I'm waiting to see if the price will drop to $73,000 and if there will be a reversal of the upward trend at that point to buy. Then I would buy again at $73,000 with the goal of selling at $95,000 if there's a sign of a drop. If that happens, then my profit will be very good. Of course, I would prefer to buy at $73,000 and only sell at $125,000. But the price doesn't go up without falling, so I'll take advantage of these small drops to buy.

[Arenga pinnata]

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.

I do see risk management as the director in regards to how a trader adapts to a particular trading style at any given moment because emotions could affect the way one trades and that's a thing to note. So whether it is aggressive or greed factor, the determinant is the capital one has and hopes to manage.
I would always adapt hence making my style is more like a hybrid style of trading because the market is often unpredictable, so I might be conservative to secure my capital at times and aggressive when I see a sustained base to increase my profit.

Yeah, that’s true. We really do have to adapt to market conditions and circumstances. If there’s a truly good opportunity, one where we’re 90% certain we’ll make a profit by taking a position, then it’s okay to be aggressive in situations like that. It’s just that we must always consider the opposite scenario in case the market turns against us.

But whether we realize it or not, as our capital grows, we’ll adapt without even noticing it. The mental pressure of managing a large amount of capital in the market is vastly different from the mental pressure of trading with only a small amount. That’s why I become very aggressive and willing to take risks when trading with a small amount of capital. But as my capital grows, I adjust my approach to stay within safe risk limits.

Sometimes what makes us too aggressive isn’t that we’re prepared for the risks involved when we still have a small capital. Rather, we become aggressive because we want to achieve a specific profit target, even with a small capital. This leads us to increase our leverage to reach that goal. For example, if someone wants a profit of 50 USD on a single position, then with a small capital, we have to increase the leverage used to achieve it. However, if our capital is large enough, we might only need to trade in the spot market, and a profit of 1% to 2% would be enough to reach 50 USD. So, the size of our capital actually influences our trading style.

[Russlenat]

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.

Trading turns out gambling when you are no longer in control of your trade, like when you trade despite how unstable the market is, or you pursue trading because you're up for sure profits, even if you know there is higher risk of losing with the current market condition.

However, I'm not saying that staying in risk-averse strategy will put your funds as its safest, but if you want to gain heavy protection of your own funds and have peace of mind with less stress and anxiety, then avoid the highly aggressive trading strategy and stick with risk-averse one.

[Odusko]

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".

Risk Aversion can be sustaining, but the big question is if the risk-averse strategy really protects your capital?
SL features is also taking losing but in small portion instead possible entire portfolio drainage via liquidation or prolonged growing loses in the trade, so ultimately we can argue with it that for swing traders that are Conservative in nature, do stop lose make sense when if proper position management is done, the trader won't bother activating the SL for any reason.

[Botnake]

I think this isn't about what kind of strategy you chose or prefer, but what works for you. And realistically speaking, who does not want the aggressive-growth strategy where we won't miss out any opportunity and maximize our profits, we all want it but the question is, does it work for majority?

That's why majority will only stick to risk-averse strategy, not because its the safest one, but because we don't have choice either, rather than seeing high risk and quick losing of our coins, I guess its better to stick with the safer one instead, and that is risk-averse strategy.