Most traders think the market is always trending. They look at a strong rally or a steep sell-off and assume that’s normal.
It’s not.
About 70% of the time, the market is doing almost nothing — just chopping around, grinding sideways and frustrating anyone trying to force trades.
The problem is that most traders don’t recognize this. They expect every day to be a big move, so they overtrade, jump into bad setups and burn through their capital.
If you want to trade successfully, you need to understand when the market is actually in a trend, and when it’s just running in place.
How to Recognize a Trend vs. a Range
A true trend isn’t just one or two strong days. It’s a series of higher highs and higher lows — or lower highs and lower lows in a downtrend — that continues over time.
But most of the time, the market doesn’t give you that.
Instead, it moves in a range. It grinds back and forth, trapping traders who think every breakout is real and every dip is the start of a crash. That’s why so many people get caught buying tops and selling bottoms.
One of the biggest mistakes I see traders make is forcing trades when the market isn’t offering a real trend. They see the S&P 500 (SPY) move a few points and assume it’s about to break out.
Then they jump in, only to watch it reverse right back to where it started.
How to Trade in a Sideways Market
If the market isn’t trending 70% of the time, you need a plan for those periods.
- Look for trades that work in choppy conditions: Instead of chasing momentum, focus on setups that take advantage of range-bound movement, like mean reversion trades or selling premium in options.
- Use the right time frames: If the market isn’t moving, daily charts won’t help much. You need to zoom in to intraday levels or zoom out to get a bigger picture.
- Be patient: The biggest advantage you can have is knowing when not to trade. If the market isn’t giving you a clear trend, there’s no reason to force trades.
Most traders lose money because they don’t know when to stop. They assume the market is always trending and make bad trades when the price action says otherwise.
The reality is that trends are rare.
When the market gives you one, take advantage of it. When it doesn’t, wait for the opportunity. That’s how you trade like a professional instead of gambling like the rest of the crowd.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Kane and Lance Ippolito Are Locking Horns LIVE
Kane wants to prove to Lance that even when the market makes ZERO move…
Anyone can still target next-day payouts. And they’ll do it LIVE at 1 p.m. ET today, Feb. 21!
