Why illiquid markets can be awesome

 

 

Here is a perfect example of why you should be trading when other are not:

On the Wednesday of the first week for 2012, we had a massive rally in the first few hours accompanied by a spike in volume. Perhaps it was funds returning from holiday looking for a home (it certainly looked like that).

So why you should be trading when others aren’t? Opportunity. Silly thinks happen in those times. The markets are lacking liquidity and that means big moves can happen. The same thing happened at the end of 2010…