My trading journey has evolved significantly over time, starting with spot trading and gradually moving into more advanced strategies like margin trading, futures, and arbitrage. Each step has taught me valuable lessons about risk, opportunity, and market dynamics.
Initially, I began with spot trading, which involves buying and selling actual assets like cryptocurrencies or stocks. Spot trading felt straightforward — you buy an asset at one price and sell it at a higher price to make a profit. It helped me understand market trends and build foundational skills in technical analysis and timing. However, the profit potential was limited to the capital I invested.
To amplify returns, I transitioned to margin trading, where I could borrow funds to increase my position size. This introduced me to leverage, enabling bigger profits but also magnifying risks. Managing margin calls and stop losses became critical. It taught me discipline and the importance of strict risk management.
Next, I explored futures trading, which allows speculation on asset prices without owning the underlying asset. Futures contracts enabled me to profit from both rising and falling markets by going long or short. The added complexity of contract expirations and funding fees required deeper market knowledge, but it also opened new opportunities for hedging and more flexible strategies.
Finally, I ventured into arbitrage trading, aiming to exploit price differences across different exchanges or markets. This strategy demands speed, precision, and often automation to capitalize on fleeting opportunities. Arbitrage added a new dimension to my trading — less about market direction and more about market inefficiencies.
This progression from spot to margin, futures, and arbitrage has broadened my understanding of financial markets. Each strategy has its own risks and rewards, and combining them wisely helps me adapt to changing conditions while improving my overall profitability.