A trading strategy is a systematic plan that traders use to make decisions about buying and selling assets in financial markets. It typically involves analyzing market trends, price movements, and economic indicators to identify potential opportunities. Traders may use various methods, such as technical analysis or fundamental analysis, to guide their actions. Effective trading strategies often include risk management techniques to protect against significant losses. This can involve setting stop-loss orders or diversifying investments across different assets. By following a well-defined strategy, traders aim to improve their chances of achieving consistent profits over time.