weathering sideways markets

R

rfoulk

Daytraders ...

What tools and techniques do you use to adjust
your trading to sideways and small range markets.


Thanks

Richard
 
sideways is good.
I like sideways.
it's the best.

that's the only time the best strategy is really : buy low, sell high.
what is the problem ? :)

tntneo
 
---- sell out of the money options.

Wouldn't you want to do this when volatility is up?
Where's the volatility in a sideways market?
 
Volatility might be in a new very low trading range because of the amount of convertible securities issued in the last year. The warrents that are part of the convertible are hedged by selling options. As long as the options you sell stay out of the money and expire worthless, volatility is not so important as time decay.
 
Buy support...sell resistance. Just keep a tight stop..and be ready to leave it there and let your profits run if the "sideways-market" turns into a trending one.
 
The problem with a sideway market is you realised it's a sideway day at around 3:30PM.... :p
... and of course, one could short at resistance and long at support, with a very tight stop, however, in a sideway day with small range, I much prefer leaving the desk and go out enjoying the sun and a beer on a terrasse. :D
 
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