So if you look at the order books, we see they are littered with asks / bids that are less then 1 btc. I'm speculating that these bids & asks are new day traders buying and selling, not necessarily for big profits, but more for the fun of playing the game.A bit of advice for the 0.125BTC traders
If your going to play this game, you might as well do it right, what you wana do is bet that the value of bitcoin will go up in the long term, to help ensure this happens you should set yourself up with a self fulfilling prophecy! make a bitcoin paper wallet https://www.bitaddress.org/
, this wallet will serve as your OFFLINE investment account, you will deposit bitcoins into this wallet regularly or even better if you can only afford less then 1000$ for your MAX bitcoin investment, buy it in bulk on the cheep
With only 21million bitcoin your small investment definitely DOES make a difference, on the internet 21million is nothing, think about it a stupid viral video gets millions of hits in a few weeks. Yes The bitcoin market has players much bigger then you, but its important you realize that ever dollar the people of the internet ( that's you
) invest in bitcoin, is what really makes the market.
OK now that you've played your part in securing the self fulfilling prophecy of bitcoin going to the moon, the day trading can start!
here we go,
first off, you have to understand your advantage
over the big players. Yes the 0.125BTC trader has one very big advantage in the market that the big players do NOT. Its all about liquidity. Your trades are so small theirs no chance of your bid pushing the price higher, or one of your asks scaring anyone into panic selling
. So take advantage of this fact, and trade often! OVER Trade! What the 0.125BTC trader wants to do is bet on volatility
. Don't try to predict weather the price will go up or
down, but rather place a bet that says, price will go up and
down. the price has been bouncing from 8 to 8.37 all day, the big players pushing the price up can NOT take advantage of these swings, they're betting big and they need a BIG swing up in-order for liquidity to allow them to take their profits. This is where the the 0.125BTC trader comes in, betting on volatility, he can extract profit all day long 24/7.your profits wont be more then 5-7%, but hey a winning trade is a winning trade and that's the fun!
1) Bet that bitcoin will go up in the long term
2) Set yourself up with a self fulfilling prophecy ( hold on to your bitcoins, long term
3) Have fun day trading, take advantage of bitcoin's limited liquidity volatility! that's the ticket for anyone trading a few coins at a time.