The bitter truth is that only professional traders are trading the sideways because they are experienced in understanding the market movements. If you consider the naïve traders they struggle to make money from the sideways market because they are not experienced as the Singaporean traders.
If you want to become successful traders by trading the sideways market as well then, you should learn a few methods to do it. In fact, the sideways market is quite risky because it doesn’t move either way which means you cannot predict anything.
Most of the naïve traders face the higher number of losses through this market so you should learn the ways to profit from such markets. A trend is something that helps you to trade successfully but in the sideways market, there is no such thing so it makes you miserable.
However, if you don’t have much experience in the trading sideways market it is better not to trade until you become experienced. You should understand whether it good or bad to trade the sideways market by being a naïve trader. Shall we dive in to reveal the explanation?
Use the chart pattern
If you truly want to trade the side way market, you need to learn more about chart pattern trading. But in the sideways market, you need to always place your trade in favor of the long-term prevailing trend.
Never try to trade against the market trend since most of the time the break out goes in favor of the long-term market trend. Being a new trader, understanding the basic chart pattern will be a little bit hard for you. So how do you overcome this problem?
You need to learn more by reading books and articles. However, if you want to learn it within a short period of time, take some professional trading course. As a chart pattern trader, you will always have to trade the higher time frame. The higher time frame data will always give you more accurate trading signals.
Trade ONLY if you understand
There are many naïve traders who trade the sideways market without really knowing what it is. They do not have the proper understanding of the market but they just try to trade. Some naïve traders assume that through a successful trading platform they can do anything but you should understand that it is not possible. Actually, a platform is just a platform it is not a trading technique or strategy.
So, if you want to trade the sideways market you should find the necessary techniques to trade it without just dipping the toes to the water. You should be able to see the market clearly because you would have to make decisions based on the market and importantly, the market will not show any changes. So, as naïve traders, you should not trade sideways market if you are not acquainted with the market.
Do not trade the choppy market
The choppy market is not worth your time so you should not trade such market if you are a naïve trader. You should look at the wider picture of the market so you will understand whether the market is a choppy market or not.
If you are struggling to identify the choppy market right now, you should not worry because you are a naïve trader so with the experience and practice you will be able to identify it easily. However, you should not trade the choppy market if you cannot understand it.
Don’t risk your account
Actually, the trading account is something that is really important so do not risk it. If you think that you cannot trade the sideways market you should not risk it rather take the time to practice more.
You should practice until you become familiar with the sideways market and you should not risk the trading account for something that is not worth the risk.