#Liquidity101

Liquidity is a crucial element in any successful trade, and many people may not pay attention to it, especially beginners. The first time I entered a currency with low trading volume, I thought it was an opportunity because it was cheap, but when I tried to sell, I couldn't find buyers, and the price slid against me significantly. Since then, I always check the trading volume and the depth of the order book before any entry. High liquidity means faster execution and a smaller price spread, while the opposite causes harmful price slippage even if I'm entering with a small amount. Now, I follow pairs with high trading volume and avoid entering currencies that have low activity periods, especially during times of volatility. If I sense weak liquidity, I use limit orders and do not rush into a market order because the price difference at that time could eat up all the profits, or even turn the trade into a loss without justification. Liquidity is important, not just for execution, but also for peace of mind during trading.