What to do when the market is flat on Iq Option?
Any moment the market may move in one of the 3 directions; up, down or sideways. You may already know that many traders believe that the best time to trade is when there is a flat market (sideways movement in other words). If there is a flat market, it is difficult to make reliable predictions. When there is a low volatility it means that potential upside is lower than during the periods of strong movements. Nevertheless, when the trading activity is low and the market is flat, trader is able to do many things.
If you are a trend trader, you want to stay in the market when momentum is strong. In this case there is no difference if the trend is positive or negative because both may offer trading opportunities. Yet, when the market is flat most experienced traders do not open new trades.
Here is the list of 3 things you can do when you are waiting for the market to get momentum.
Maybe it doesn’t sound attractive, but this step is really important. Do you remember that it is important for a trader to have a trading journal? In trading journal there is all information about trades and related information. What type of information have to be in a trading journal? Everything that has to do with your trading and everything you think is important, this can include your emotional state, market observations and many more, everything that is related to your trading. We recommend that you put down market conditions the moment you open and close the trade, what went well and what need to be improved, your mistakes and observations. When the market becomes flat it is time to check your trading journal, identify how effective your trading system and make some adjustments that are needed. If you use a trading journal correctly, it can make better your trading performance in general.
It is commonly known that every exchange-traded assets are affected by fundamental factors such as economic, political, social and many others. When the market is not moving, you can find a fundamental explanation to this and use for your future purposes. For instance, the market is waiting for a big announcement or an earnings report when a company stock is traded in a narrow corridor. When there the market is flat, it is a good idea to do sector and seasonal analysis in order to determine new trading opportunities. If you are into stock trading, you can also read economic and company reports.
Moreover, when the market is flat, you can do technical analysis using available indicators and tools. Technical analysis can be an addition to your trading system and help you understand it better. At this stage you can take a look at different assets on various timeframes and analyze the market for anomalies.
In addition, you can check out your trading strategy and set it according to regularly changing market conditions. When one indicator stops working it might be a nice idea to try something else or to fully change your trading system.
Conclusion about flat market on Iq Option
The flat market is absolutely not the most interesting part of the trading process but it really important to use the time rationally when the price goes sideways. Assess your performance and try to find new trading opportunities.