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.
