Trading, Mistakes, and Tears. (1)steemCreated with Sketch.

in #bitcoin7 years ago

This is the beginning of a series about trading mistakes you can avoid easily... if you know them beforehand.

First of all look at this picture.

What's wrong?

What's wrong in this picture?

Tell me what happened between 4:15 and 6:15.

See that tiny candlesticks?

Chart highlighted

So, what happened?

Nothing. Cero. Nada.

The same that happened between 2 and 4h.

Nobody was trading at spot price.

There is no volume.

There is no liquidity.

No money on the market.

And this is very bad for a trader.

Because you win or loose money when stuff happens.

When nothing happens, you can only loose money.

Okey, I can hear you, you only buy coins that have some volume.

But you can be tricked to enter in a market without volume easily.

Someone has to just pump (start buying) and dump (selling) the coin.

With enough money, in a low volume market, a trader with deep pockets can make a coin go up 10%, maybe 20%.

Then people see it's going up and they buy it, too.

So, before you enter a market look at the past 2-3 days.

If there is no volume, think carefully about your strategy before making a decision.

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