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Re: Pros & Cons of Trading in Slow or Not-So-Liquid Markets.



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Nobody said trading is easy. It is where nobody ventures that you find the
best opportunities. Otherwise, you are competing with hundred others for the
same ticks. Yes, in illiquid markets you can be fooled around, and hence you
should not attempt to daytrade, however trading at the open or the close only
is not too difficult. Now just as benefits are potentially greater, so are
the risks: There's no free lunch...

Gwenn


Desmond Sutherland a écrit:

> I would think that it is non-liquid markets that are prone to whipsaws
> etc.  In a liquid market the bid-ask spread is fairly narrow and one can
> get in and most importantly, GET OUT, fairly easily.  In a non-liquid
> market, the bid-ask is very wide.
>
> Gwenn Ael Gautier wrote:
> >
> > My 2 cents:
> >
> > Liquid markets:
> > - side: more noise, false starts etc, that is more whipsaw.
> > + side: easy execution, almost guaranteed to be filled unless you buy
> > "with a gun"...
> >
> > Illiquid markets:
> > - side: You cannot just go in and buy, or you get big slippage. If you
> > buy limit, which is your only choice, you risk missing the whole trade.
> > That's the risk.
> > + side: If you get your execution right, you have an edge as you tread
> > in waters nobody dares venturing in.
> >
> > An edge is what you want.
> >
> > Yours,
> >
> > Gwenn