Avoiding the Pitfalls of Sideways Trading

Trading requires a lot of diligence, especially with the month of July where the market from its opening price on July 1st through today’s closing price has only move 16 points on the S&P 500.

That’s less than 1% of the market’s current value. 

As a result it takes a lot of time and diligence to consistently profit in such a market. There are a lot of factors that can lead to making costly mistakes as well: from over-trading and lots of commissions to frustrations of seeing winners turn into losers. You also have the lack of solid winners that run nicely and the absence of momentum in the market indices. 

If you’re not careful this can all lead to a loss of capital that can quickly dig  you into a deep hole. 

As a trader for nearly 20 years now, I have learned to consistently profit in all market types. 

And by far the hardest market to trade are the ones where there is little to no trading range. However, profiting in them is still possible. For one, you have to lower your expectations for what you can take away from the market . In a rising market if you are accustomed to booking profits of 8-10% on your swing-trades, then in a sideways market, you may have to be content with 2-4%. On the other side of trading, you must, and I repeat, MUST keep the stop-losses tight. If you are only taking away 3% in profits from your winning trades on average and that means your average loss needs to be no more than 1.5%. While I have had some losing trades myself this month, I have managed to keep them to an average of 1.1%. That is huge because making a profit this month becomes so much easier when you can keep the losses insignificant in your trading while managing to let the winners run between 2-4%. 

For instance, I booked profits in Kate Spade & Company (KATE) at 39.76 for a 4.4% profit today, which is four times the amount in profits compared to the average loss that is incurred. 

That’s huge!

You have to be aggressive in this kind of market and take the profits when you have them and you can start doing that with me each and every day by signing up for my Free 7-Day Trial to the SharePlanner Splash Zone where you will receive all my trade alerts in the Splash Zone Chat Room. Also, you will also get my trades via email and text (international numbers too). For those who can’t follow all my trades, I would encourage you to sign up with Ditto Trade where they automate the trades of many Splash Zone Members so that they can profit consistently in the same manner as I do. Just check out the kind of past performance that I offer my members. 

Don’t let this market churn your portfolio into little pieces. Start trading in the SharePlanner Splash Zone Today, and start profiting consistently in the stock market. 

With The Splash Zone, you will get my low risk and high probability trade setups that no other trading service can offer.

Start Your Free 7-Day Trial Today!