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Liquidity Explained | Money Arata 71 

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A surprisingly large number of people are speculating in financial markets, not only trading in cryptocurrencies but also seeking out lesser-known companies in the stock market in hopes of hitting it big. This kind of behavior stems from the desire for significant returns.
If this sounds like you, then you're trying to find assets with high volatility. You hope to multiply your capital quickly. However if you don't have mastery of the concept of Liquidity, this is risky, and we need to explain why.
In trading, understanding liquidity is like having a map. It helps guide your decisions. It affects your potential profits. It helps you see the risks. An illiquid market might promise high rewards, but it also comes with high risks. The price can change a lot. Your expected profits can turn into big losses quickly.
That's why it's important to understand liquidity before you trade.
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21 июн 2024

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