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How to make money in ranging markets?

5 min Emini Nasdaq 100 Candlestick Chart

The answer is simple. We make money by not losing money. Simply stay out of the market! Look at the chart above, Emini is moving in a 12 point range less than half of what it usually moves on a reasonable day. Do you think you will be able to capture any trend in such a market? Even if you manage to capture one leg or two of the trend, you run the risk of being whipsawed out easily and the market bounces up and down. It is wiser to go to starbucks have a cup of latte and read newspapers.

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