The answer is almost certainly no. If you see an opportunity on the markets and the market price is below $0.01, then it’s probably a good idea to pick it up immediately. If the prices are above $0.01 and the market price is still higher, then selling is probably a good idea, especially if you are a new trader. To help clarify, let’s first look at a more traditional example.
When I wrote my book, I included an example of a scalper on a particular day and some of the questions that were asked. I then asked the participants to take the time to think about the value they gained when scalping and the value the market received. To me, that was a successful and fair question. I got a lot of good responses from the participants.
Here’s a more complicated example that may make scalping look very wrong. Imagine two groups of traders who have access to the same markets. One group has 50% of the coins and is able to trade any number of times a day but only $0.5 of profits at a time. The other group has a similar split of coins with 50% being able to trade and 30% being able to only sell for $0.50 a position. The question I asked was: “What percentage profit would you have made by using your coin in your previous trades?” There wouldn’t be a simple answer, as there’s a wide range going from 50% to 200%. But, to me, that meant that the scalpers would have been able to make a profit of anywhere from 10% to $300,000 a day.
The question here is the same but from the viewpoint of the market. The market participant thinks about how many coins he thinks have value and how many he really does need in order to make money each day. The price of the coin and/or the price of other coins is relevant. If you can’t sell for $30,000, you might want to make sure you are making some profit.
It’s very important for the market participants to consider the value of the coins and the price of the market as well as their own profitability, which is often not the same thing. Sometimes the market participant’s profits will be higher than a scalper’s because there’s more volume, more people trading, etc; but sometimes the market participant’s profits will be lower because the scalper is using his own coins the way that the market expects. That is, whether the market expects the
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