Trading, Mistakes, and Tears. (1)

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?

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

See that tiny candlesticks?

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.