Trading mistakes and tears (2)
Last post was about volume.
This one is about price.
Before trading cryptocurrencies I traded shares.
That was more than 20 years ago.
I remember trading low-priced shares.
That's shares selling for under 1€.
Why? Because with my budget I could buy 100/200 shares and wait for them to go up.
Just 5-6 cent gain was good: more than 5-6% gains.
Cents multiply easily, right?
Problem is cent shares had limited price movement.
With cryptocurrencies, this is worse.
If you look at the ordebook for DOGE, you'll see all possible combinations are taken.
That means you are a market taker.
If you place an order you get in a queue...
...Waiting for all traders before you either cancel or make their orders.
And waiting in queue is frustrating.
Specially when you want to cash out your earnings.
The market might have volume, but your order is stuck in a queue...
..And you don't know what is your position in the #@! queue.
Truth is you don't need to buy a while bitcoin.
You can buy 0.00043710 of a coin to learn how to trade.
And you can buy coins with good volume.
This is part 2 in the series.
Part 1: is here https://steemit.com/bitcoin/@eb0la/trading-mistakes-and-tears-1
Yes I have found that volume matters a lot for a coin. Trading in high volume coins usually means my price is met, and much sooner, than for a low volume coin, even if I like the low volume coin better. Low volume exchanges are also frustrating to work in.
You can also play strategies with multiple entries and exit points on a shorter time frames :)
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