#市场波动,加仓还是观望?
Why should small funds choose to trade unpopular markets?
If you focus on trading large markets such as BTC, ES (S&P 500 futures), major forex pairs or gold,
you will not only face retail traders like you, but also large institutional players, quantitative companies, etc.
The root cause is that these markets have super high liquidity, which allows large-scale capital participants to easily participate in the competition.
Although it is not impossible to get involved in these markets, if you don’t have sufficient funds, you will actually have more advantages in the low-liquidity markets.
For example, many altcoin derivatives, NFTs or on-chain coins are not attractive enough for large participants because the liquidity of these markets is difficult to meet their trading scale requirements.
When I started to explore the altcoin market more deeply, I often found the clearest trading signals in the illiquid markets.
At first, I was confident in these "low barrier to entry" markets, but when I tried to execute large-scale position transactions, I was shocked to find that my orders were very eye-catching in the order book, which made me deeply realize the disadvantages of insufficient liquidity.
However, for small account traders, such problems do not need to be overly worried, because only when your order size climbs to high five or six figures will such liquidity problems really affect you.
If you want to seize this round of bull market, it is definitely too late to learn and sell now, and it is best to have someone to guide you to get started quickly.
I am David, welcome to communicate!