#Liquidity101 : The Most Overlooked Factor in Your Trades
You’ve done your TA. Set your targets. Hit “Buy” — and boom, you’re filled at a price that makes zero sense.
Sound familiar? That’s not just volatility — that’s liquidity.
🔹 What is liquidity?
It’s the ability to quickly buy or sell an asset without affecting its price too much.
It’s what separates smooth scalping from accidental pump-and-dumps.
🔹 High liquidity
– Tight bid-ask spread
– Fast execution
– Minimal slippage
Great for major pairs like BTC/USDT or ETH/BUSD.
🔹 Low liquidity
– Wide spread
– Slower fills
– You move the market with large orders
That’s where most traders get wrecked — especially on small-cap gems.
💡 Pro Tip:
Before you enter a trade, ask yourself:
👉 “Can I get out without panic-selling into the void?”
📈 Want better trades? Don’t just chart candles — chart the depth.
The deeper the pool, the safer your swim. 🐻💧