What category does your strategy belong to?

[Jostle]

Answering your question, I'm with (1). I'm actually a risk-averse person by nature (although you could argue that if I invested in Bitcoin, I'm no longer considered risk-averse).

I often let emotions get the better of me, and make aggressive (but wrong decisions). In order to overcome it, I do not look at charts or prices anymore, and stay away from those "automated strategies" like "trading bots", "arbitrage bots", or any other things. I do use DeFi to a certain extent, but try to limit those.

Making rapid trades (buy-sell) or swaps tend to get me to make the wrong decisions. I understand myself so I will try not to look at short-term swings.

[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.

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

Low risk does not make you a swing trader. The number that matters is how much you lose when you are wrong. A small account can still die on BTC if the size is too big or too much leverage/risk.
Risk management is a must, you need to be careful about your trade size, or total account size too. It's not easy.

[Barikui1]

The number that matters is how much you lose when you are wrong. A small account can still die on BTC if the size is too big or too much leverage/risk.
Risk management is a must, you need to be careful about your trade size, or total account size too. It's not easy.

So true.
One thing about trading is that it exposes your emotional weakness so easily, so if you must be able to control your emotions, trading with what you can afford to lose is a must. Using a small account to trade as a beginner is very important, so that your loses wouldn't be heartbreaking, until you know how to manage your risk properly, because if you cannot manage a small account, you can equally not be able to manage a big account, so your ability to make your losses smaller when the market didn't go as planned is very important for your survival in the market.

[OsaiEmma]

Although this doesn't say much about the actual strategy's, but i'll stay on point.

I'm not trying to do that either, I can't give out strategies to anyone when I'm still looking for that perfect strategy myself . There are millions of strategies out there, I'm just grouping them based on the two most relevant emotions that drive the market.

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.

This actually makes sense. But I believe this will ultimately make traders get confused at some point with their setup. However, if a trader masters the art of being flexible in such a way, then that's an elite trader right there.

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.

Good point. If one can truly control their emotions, they'll attain mastery -- He who conquers himself is the mightiest warrior (Confucius).

But there is a nuance to this, I don't necessarily think what makes traders stay at the top 1% -- or whatever percent -- successful traders is because of just "being in control of your emotions"; I think there is more to it. One thing I've seen and observed as the difference between the successful and unsuccessful trader is the account size. You can have the best strategy, mind-set, etc, but without a large account size, you're in a massive disadvantage. Small accounts don't really stand much of a chance in the market.

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.

Wow, this is a very aggressive setup, I guess you are taking the aggressive growth route. You're the only exception in the crowd of commenters who are all going for the Risk-Averse

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.

This is true to some extent. What if one has a big enough capital to entertain the risk? Then I think they'll be more inclined to taking more risks to maximize profit, don't you think?

[slaman29]

I can look back with honesty and say that whatever strategy I employed in the past, most of it fell victim to my underlying risk-blind spirit.

I knew what the risks were but chose irrationally to say or think or FEEL it was gonna be different.

Now my DCA is the only patient strategy that works. No timing. No capital. Just patience and routine.

[GeorgeJohn]

Many traders will like to welcome Averse strategy trading, because they will not like a situation whereby they get lost in trading, every traders doesn't want to lose whereas they know that trading is made up of risk......why Aggressive-growth strategy, the trade knows already that they're going to take a risk, and they have to take precautions and be more conscious in whatever they do, so that they will not get lost...myself i like to take a risk, because if you have fears in you, their's no way you be rich...

That's why entrepreneur says that a risk takers is liable to be rich at any point in time...An experience traders who knows the advantages and disadvantages of trading will like to follow the principles of Aggressive-growth strategy in trading, because one time successful can change a trader situation and conditions...

[Nrcewker]

Everyone loves their money, hence the majority will choose Category 1. The reason is pretty obvious that we need to make sure, first of all that our money doesnt go into the negative. Whether we are able to make money or not is a secondary concern that we will try to figure it out next.

Now someone might complain that what about good market opportunities that are supposed to make you tons of money? However that is essentially equivalent of taking higher risk to trade. Hence I prefer setting smaller targets and not becoming greedy while hunting for opportunities. I believe that slowly but consistently, we can reach our destination and achieve a good profit target.

[snowpega]

...
1. Risk-Averse strategy
...

First of all, I am the kind of person who stays away from the trading space most of the time. Because I am more a kind of person who is more intact with the plan of long-term holding. but whenever I take any trade, I always make sure to stay on the safe side using some risk management strategies. And for now, if I have to count myself according to your saying, then I would select myself as the aforementioned category.

Why I think I should trade less is that there is a lot of uncertainty in the crypto market, and you really need a lot of knowledge and at the same time, the craziest part is that your knowledge also doesn't help you to save yourself from losses due to the unpredictable behaviour of the crypto market. This is why we should only allocate that amount of portfolio for trading space that we can bear in the form of losses. Well, this is my point of view. What do you think about it?

[Cheema02]

I think I prefer a risk-averse strategy because I'm obviously not a whale. However, instead of using a normal stop-loss, I mostly prefer a trailing stop-loss with no set take-profit target. This helps me catch longer trends instead of settling down with small profits that we can get with take-profit targets, because as the market moves in the direction of your trade, the stop-loss will keep going up as well at a set percentage, such as 5% or something, which means that the stop-loss will eventually reach above the starting point of my trade, which means that even if the market reverses and the stop-loss gets hit, I still won't lose anything, but if it keeps going up, I can get way better profits.

I don't trade futures that much, but whenever I do, this strategy is very useful, especially at times when you know that the market is having larger swings, which means that if it starts going up, it goes up longer than it generally might do, in which case, a trailing stop-loss will help you secure better profits. However, with this strategy, you will have to keep an eye on your trade and the market because you will need to close it manually.

[taufik123]

I can look back with honesty and say that whatever strategy I employed in the past, most of it fell victim to my underlying risk-blind spirit.

I knew what the risks were but chose irrationally to say or think or FEEL it was gonna be different.

Now my DCA is the only patient strategy that works. No timing. No capital. Just patience and routine.

If you really want to do DCA, it also requires a large amount of capital to make purchases gradually
and at a time that you will determine or at least when the price drops drastically or below your last purchase price.
DCA needs more capital because it is constantly buying not just holding back and some right price timing is always looked forward to to getting a cheap price.

So, if the initial goal you need is some time to relax and be unaffected by emotions you are a Holder,
buy and wait for the target price to rise without looking at any developments.
Because if you do DCA everything has a well-thought-out strategy and the right management of capital and emotions.

[Dareo]

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?

For me I would choose the Risk Averse strategy, because it is more important to save my capital than to take every opportunity in trading. I would first decide how much loss I can take if a trade goes wrong and then I would adjust the entry and position size accordingly. It is not a problem even if you miss some good trades, because new opportunities come in the market every day.  But if you have a big loss, the mental pressure to take the next trade also increases and the possibility of making a wrong decision also increases. So this rule of saving capital first, then making profit is more practical for me.

[Stalker22]

I think every beginner trader starts out in the aggressive camp.  Until their first big drawdown forces them to respect risk management...  

Personally, I lean far more conservative.  Take care of your downside and the upside will take care of itself, right?

If you really want to do DCA, it also requires a large amount of capital to make purchases gradually
and at a time that you will determine or at least when the price drops drastically or below your last purchase price.
DCA needs more capital because it is constantly buying not just holding back and some right price timing is always looked forward to to getting a cheap price.
~

What you are describing is timing the dip.  That is actually the complete opposite of how DCA works.  It is just buying small, fixed amounts on a set schedule regardless of price.  ANd no, you do not need "a large amount of capital" for that.

[jossiel]

The majority of us might be the risk averse traders and uses that strategy. Those who haven't experienced that much losses are probably the aggressive growth traders.

I think we're passed already as aggressive traders and we want to be more conservative and does trades that we have calculated the risk.

We're no longer into that thinking of becoming greedy and what matters is that we profit whether it's small or big, as long as it's not a deficit and loss then that's the goal.

[CryptopreneurBrainboss]

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 believe and see myself as a profit oriented traders but that doesn't mean I'm driven by greed. Sure I want to make profits but I understand the boundaries I have to keep to protect my funds and know when to call it a day when it matters to avoid losing the little I have been able to get as profits. I don't think everyone is driven by greed and that's the truth here although we have majority of traders that get triggered because they won't stop but continue to trade until they lose everything. To them, trading is like gambling and that's why they don't get satisfied with the profits they have gotten. This Habibi can also be related  to how often people trade, I don't do it regularly so there isn't a way I can say, I'm chasing the profits because of greed as I'm quite alright financially.

[taufik123]

What you are describing is timing the dip.  That is actually the complete opposite of how DCA works.  It is just buying small, fixed amounts on a set schedule regardless of price.  ANd no, you do not need "a large amount of capital" for that.

No, I didn't try to predict it because I just bought it gradually with a set price timing or timing.
Big capital, ok I won't say big capital but enough capital will be needed when the price drops continuously during the DCA Timing.

It is also necessary to have some best strategies, such as making compound incremental purchases to provide a lower buying average so that it is faster to make a profit when it rises.
But DCA also does quite well by looking at the price decline, not just on the timing or schedule that has been determined,
so when the price is high, hold it first and then buy it when the price corrects the lowest support.

[Cleanshit]

I believe and see myself as a profit oriented traders but that doesn't mean I'm driven by greed. Sure I want to make profits but I understand the boundaries I have to keep to protect my funds and know when to call it a day when it matters to avoid losing the little I have been able to get as profits. I don't think everyone is driven by greed and that's the truth here although we have majority of traders that get triggered because they won't stop but continue to trade until they lose everything. To them, trading is like gambling and that's why they don't get satisfied with the profits they have gotten. This Habibi can also be related  to how often people trade, I don't do it regularly so there isn't a way I can say, I'm chasing the profits because of greed as I'm quite alright financially.

Yeah same here i don’t think wanting to make profit means the trade is greedy because there is nothing wrong with profit oriented so long u understand the risk involved and also limit. The only issue I see is when what a trader keeps on chasing more profits even after making a good gain, because this can allow emotions to take charge and and you take unnecessary risks. In trading you should know when to stop and continue this very important.

[Natalim]

I can look back with honesty and say that whatever strategy I employed in the past, most of it fell victim to my underlying risk-blind spirit.

I knew what the risks were but chose irrationally to say or think or FEEL it was gonna be different.

Now my DCA is the only patient strategy that works. No timing. No capital. Just patience and routine.

That leads me to a conclusion that trading is certainly not for everyone, and not all traders are profitable, majority are still losing their funds.

I have also my bad experiences in trading. One thing I know is that trading is like gambling, the future outcomes  do not mostly favor you but is always against you. You can be brave and be a risk-taker, but you can still end up losing in the market.

But with regular DCAing, you know for sure you won't lose your digital money, unless if you go for sudden, panic selling and sell at a huge price discount.

[joniboini]

I have also my bad experiences in trading. One thing I know is that trading is like gambling, the future outcomes  do not mostly favor you but is always against you. You can be brave and be a risk-taker, but you can still end up losing in the market.

I don't think being a risk taker means you should gamble everything though. We have tool like stop-limit and others to manage loss properly. Not to mention there's no guarantee you'll win even if you follow them all because nobody knows the future. Things might be different if you're close to the circle and has many access to first hand info quickly. I don't think that's necessary for swing trading though.

All in all it's impossible for the majority to be the winner to begin with. What you earn is what other people lose. If you managed to sell something at the top someone else is buying it.

[justdimin]

Everyone loves their money, hence the majority will choose Category 1. The reason is pretty obvious that we need to make sure, first of all that our money doesnt go into the negative. Whether we are able to make money or not is a secondary concern that we will try to figure it out next.

Now someone might complain that what about good market opportunities that are supposed to make you tons of money? However that is essentially equivalent of taking higher risk to trade. Hence I prefer setting smaller targets and not becoming greedy while hunting for opportunities. I believe that slowly but consistently, we can reach our destination and achieve a good profit target.

It is also the correct option if you know what you are doing. Because traders may profit or may not profit, but long-term holders will profit as long as they hold enough. Knowing this means that if you are focusing on profit only, and not rushing into anything, then you should not be worried about anything at all. I get that it may not be that simple, but the reality is that we are not looking at this like this is something that would be benefiting us in the long run.

It is clear that we are going to see some stuff changing over time, and that is the truth. So if one day trading becomes a lot easier, maybe like with AI or something, then yes, trading and taking risk would mean something, but until that moment we should not be expecting anything big from trading, and long term is a lot better.

[Royal Cap]

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 think that most people will be towards the Risk Averse strategy. And I myself am towards this. The first reason is capital and FOMO. And if I do trade, then I trade with very small amounts and try to take low leverage. Because it has less risk. But I think it would be better if there was another category. Because I prefer long term holding more than short term trading. And I have doubts about which category this will fall into.