🧩Trading Low-Liquidity Assets: A Trap for Beginners
Examples of Failures:
$FTRK (Fast Track Group): -85% after IPO due to trading volume < $100K/day → cannot exit without slippage of 5.
Meme coins (
$PEPE , $POPCAT): 70% drop by 90% with volume < $1M 9.
Liquidity Rules:
⚠️ Do not buy an asset if:
Average Daily Volume < $10M
Bid/Ask Spread > 0.5%
No futures on Binance/CBOE
Tools:
StockAnalysis.com Screener → filter “Volume > $50M” 7.
#LiquidityCrunch #Slippage #TradingStrategyMistakes $PEPE