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.