#ArbitrageTradingStrategy
In the market, there are many strategies, each with a different way of thinking. The first thing you need to differentiate between is spot trading and futures contracts. Spot contracts mean you buy the actual asset and own it outright, while futures contracts involve betting on the price in the future, meaning you can profit even if the market drops, but of course, the risk is higher and there are legal warnings.
If you are talking about trading by holding assets, this is a method that many people love, buying stocks or currencies and holding them for years. The most important thing is to choose strong projects and be patient, enduring temporary fluctuations.
In day trading, you enter and exit on the same day, which requires nerves of steel and quick decision-making. One of the best strategies here is to follow the real-time trend and exploit fast news and strong technical analysis.
In breakout trading, you wait for the price to break through resistance or support and confirm the breakout with high trading volume. In trend trading, you identify the major trend (upward or downward) and ride the wave.
In arbitrage trading, you look for the price difference between two platforms, buying from the cheaper one and selling in the more expensive one, which requires real-time tracking tools and quick execution.
The most important thing I learned is that I used to enter without a stop loss and was greedy in every trade. I learned that discipline and risk management are what differentiate any successful trader from a gambler.
So, which strategy do you prefer?