Monitoring market liquidity is vital for any trader, as liquidity reflects the trading capacity of the market and the ability of the market to withstand demand and supply. Here are some best practices for monitoring market liquidity:

1. **Monitor Volume:**

- Look at the trading volume of the assets you are interested in, as high volume indicates good liquidity and easy trading ability.

2. **Monitor Spread:**

- Check the spread of the asset you are trading, as a lower spread usually reflects a more liquid market.

3. **Analyze Bid and Ask:**

- Monitor bids and offers for your assets to understand the balance between supply and demand and market strength.

4. **Use Conditional Orders:**

- Use stop-loss and other conditional orders to maintain liquidity and avoid bad situations.

5. **Monitor Economic and Political Events:**

- Anticipate how economic and political events might affect market liquidity and how they will affect your assets.

6. **Portfolio Diversification:**

- Diversify your portfolio across different assets and geographies to reduce liquidity risk.

7. **Liquidity Time Monitoring:**

- Analyze liquidity time, i.e. the period of time it takes to achieve a successful trade, and ensure that the assets you trade have sufficient liquidity.

8. **Using Analytical Tools:**

- Analytical tools such as liquidity indicators and flow indicators to understand the extent of liquidity.