When you have a small account and you're setting buy orders on these low volume coins hoping for quick drops, do you have to be careful about not setting too many buy orders?
Like if I only have $1,000 and the amount of buy orders I set amount to more than that and they suddenly go off and execute the buy what happens? Will the buy orders that you no longer have enough funds for just not get processed?
I ask because I feel like to truly take advantage of those quick drops in price you're gonna have to set up a lot of little buy orders, kind of like little traps, I just don't want to overextend, but at the same time don't want to miss out by not having a buy order ready for those quick 25% gifts ya know. I hope I explained myself properly lol.
You cannot set too many buy orders, the exchange wont let you.. You can only set up buy orders equal to the amount of money you have availible.. and these are high percentage trades, so if you have $1,000 dollars, i would split that up, into atleast 3 parts.. $330 $330 $340 and then trade three different low volume coins.. even if you make 20-30% on a trade = lets say $100 profit per trade, that only takes you 10 trades or so before you have doubled your account.. but you have alot less risk than putting all 1,000 on the line in one trade.. 10 trades go by fast, maybe 2 weeks and you will double your account.. thats how powerful this type of trading can be on a small account
I'm putting this into effect right now...I'm looking forward to turn my $1000 into a $10,000+ in the future. Thanks Luc!