#HODLTradingStrategy

The holding trading strategy can be discussed

as one of the long-term trading methods, which relies on buying financial assets (such as stocks or cryptocurrencies) and holding them for a long time, from months to years, with the aim of benefiting from the growth of their value over time.

--- The holding strategy and its advantages

1. Low effort and monitoring: No need for daily market tracking.

2. Benefit from long-term market growth: Historically, markets tend to rise over the long term.

3. Reduction of fees and taxes (in some countries): Due to the low number of transactions.

4. Psychological Comfort: Don't worry about daily price fluctuations.

--- The holding strategy has disadvantages

1. Risks in case of market collapse: You may incur significant losses if you buy at the market peak.

2. Capital Freeze: Your money may remain tied up for long periods without immediate profits.

3. Missed Opportunities: You might miss out on profits from short-term movements or opportunities in other assets.

-- Uses ---

- When investing in fundamentally strong assets (such as large, stable companies or cryptocurrencies with a clear project).

- If you believe that the asset will significantly increase in value over time.

- If you do not have sufficient experience in day trading or active trading.

- When wanting to invest for the long term instead of day trading.

- An investor who bought Bitcoin in 2015 and held it until 2021.

- An investor who bought Apple or Amazon stocks years ago and only sold them after their value multiplied several times.

-- Choose assets carefully after analytical study (fundamental and technical).

- Do not invest all capital in one asset (diversification is important).

- Be mentally prepared for patience and enduring fluctuations.

- Define your time target and exit point before entering.