Option traders can make very good money in a sideways market, stock traders just feed their broker. Diversifying strategies is not a bad idea to deal with different markets. Phil Check out my trading Journal under SPX Credit Spread Trader for info on using options in a sideways market. Long holders do suffer but there are still ways to make money.
so you caught mopre than 25 points not bad at all. Funny this is close to where I entered , I wish I was better prepared this am to ride it all the way from 10 am If you are talking about daily weekly range I would not b surprised if it gets worse in July and August I don't see it go much higher nor is it gonna start falling in earnest before mid august.
Summertime ain't got that much to do with it, if we're talking about daytrading. If you can trade in January, you can trade in July. Yes you can.
You know what, its my attitude! and it sucks. I should be thankfully I did not loose. I need to step back and get my head right. Tonight I am going to dust off Trading In The Zone by Mark Douglas. Yea thats the ticket, Im a constantly profitable trade.
All we're saying is, the mkt isn't what it use to be, the only question is what is it now and how can I deal with this new reality.
======= Right Rick, and you are the one choosing only one product; and would be somehat suprised if it does anything much more than summer sideways trend [rage i mean range]. Good work Ripley.
I think most traders stop short at the idea of embracing choppy markets. Yeah, it's a lot better when you can catch open range breakouts every day (think 2001), and historical volatility is above average. You may have thought last year that the low volatility was just a passing phase and didn't really want to put in the time and effort (and thought it was probably fruitless) to trade in low-volume, trendless environments. But if you put in the time and effort, the payoff is huge. Start with the 2B patterns, and look at what happens at the logical breakout and stop points. Think of trading in this environment as how and when the most traders (yes, you) will be hurt. Until volume picks up, you want to reverse-engineer the trend-following strategies, and buy when they're selling and vice versa. You don't need to learn "high frequency" finance to make money -- whatever tools and techniques you can use to predict short-term price action with high probability are just fine without understanding the intricacies of diffusion clouds. If you're doing this as a solo trader, you're probably on the wrong path. Currently, the most common phrase seems to be "triggered and fucked".
Or maybe the market is again becoming what it often is: quiet. The market and I have an agreement, specifically, it will do whatever it wants whenever it wants regardless of my style, beliefs or strategies. To date there has not been even a minor breach of that agreement.