Quote from: Olomana on June 12, 2011, 01:35:53 AM

Quote from: xtapol on June 12, 2011, 12:48:24 AM

But while we're on the subject, Bitcoin is a terrible market for short-term trading. Low-volume markets are nasty, and you're likely to lose your shirt.

I disagree. There is plenty of volatility, and trading can turn volatility into profit. Low volume is only a problem if the volume is low relative to your trading capital and frequency of trading. People have suggested dollar-cost averaging and buying the dips... that's already half a trading strategy. Use the corresponding techniques on the sell side and you're a trader.

We should be encouraging traders, as they will provide liquidity and smooth out some of the volatility. Exactly what the bitcoin economy needs.

If you're a seasoned trader, you love wild swings (although they're a lot harder to deal with without derivatives). If you're an average trader, or one of these people panicking now who know *zero* about trading, this is not the environment for you. Low volume is not just a problem because it limits your moves, it's a problem because higher liquidity means saner markets.

As to the rest of your comment, I agree - absolutely we need more traders. I'm just not willing to accept the level of risk that comes with *being* one of those traders right now, and I think most people here shouldn't either.