#trading
Trading operation involves monitoring market data in real-time, analyzing price patterns, and using technical indicators (like RSI, MACD, or moving averages) to identify entry and exit points. Many traders use automated bots to execute trades based on predefined rules. Others engage in arbitrage (buying from one exchange and selling on another for a profit) or swing trading, which involves holding positions for a few days to capitalize on price fluctuations.
Risk management is crucial, with stop-loss orders and portfolio diversification commonly used to limit losses. A trader might also keep an eye on news, sentiment, and upcoming events that could cause volatility (like regulatory changes, or technology updates like Ethereum's upgrades). Finally, crypto trading often involves the use of leverage, but this increases the potential for both profit and loss.
