3 Risk Actions to take in a Sideways Market
“Do you have any risk or money management rules you take, during a Sideways Market or Twilight phase? I want to be more cautious with my trading.”
These actions, no doubt, will help us protect and preserve our trading accounts.
Action #1: Drop your risk even more
If you’re feeling uneasy with the markets, as many have – drop your risk.
You can even drop your risk to a range of 0.5% to 1% per trade, as opposed to the usual 2%.
This will keep you in the game, so you don’t miss out on any moves.
Action #2: Hegde your portfolios
I consistently employ hedging strategies, both Longs and Shorts.
For example, you can go long stocks and short gold as a hedge.
Or you can go long Bitcoin and short Ethereum as a hedge.
As long as your losses are smaller than your winners, then your winners will outweigh.
And this will help keep your portfolio in check.
Action #3: Diversify
The JSE ALSI 40 isn’t the be all and end all of trading.
You need to learn to diversify into other markets.
I’m talking about Forex like EUR/USD, Indices, and even intraday trades.
