Post
Topic
Board Trading Discussion
Re: 3 things should not be too in trading
by
huige007
on 11/10/2019, 17:04:50 UTC
too much volume has been the biggest enemy of traders. Volume can lead to artificial pump and dumps which can really take away money from retail investors. Newbie traders should try trading only in securities which don't have much volume around otherwise there can be a lot of problem.
I dont think too large volume is a problem, precisely a large volume will reduce the risk of scams and price manipulation. if you trade on altcoin that has a small volume, they will be very easy to manipulate and very easy to reach very low prices and even collapse. I think large volume is not something to be feared, in fact many investors prefer to invest in top of marketcaps (biggest volume) because it proves to be more profitable.
This is the sole reason why bitcoin has great dips at times because it has limited volume. This is rule of economics that when there is limited supply of something, it is always going to increase in price because people make huge demands. Those who want to enter into trading; they shall never ever try trading with huge money without having sound knowledge.