They say profiting in stock market is easy. The fact is it is not easy to make money in the stock markets.

Why ? Because 75% of the time in an year Market Remains sideways i.e Flat and in flat markets retailer traders loose money in options.

Why does the Market Remain sideways most of the time ?
Explanation is here ( Source : Quora)

The idea that 75% of the market is always sideways in the stock market might be an oversimplification or a generalization. The stock market is influenced by a complex interplay of various factors, including economic conditions, investor sentiment, geopolitical events, company performance, and more. Here are a few reasons why some segments of the market might appear to be moving sideways:

1. Consolidation Periods: Stock prices don’t always move in a clear upward or downward trend. Periods of consolidation can occur when prices move within a relatively narrow range. This can be due to investors taking a pause, waiting for new information, or the market assessing the impact of recent news or events.
2. Market Sentiment: During times of uncertainty or lack of significant news, market sentiment might be neutral, causing stocks to move sideways as investors wait for clearer signals before making significant moves.
3. Technical Factors: Technical indicators, support and resistance levels, and chart patterns can influence short-term price movements. If a stock encounters strong technical resistance, it might struggle to move decisively in one direction.
4. Sector Rotations: While some sectors might be trading sideways, others could be experiencing more significant movements. Investors often rotate their investments between sectors based on economic cycles and market conditions, leading to divergent performances across different industries.
5. Lack of Catalysts: If there’s a lack of major news, earnings reports, or economic data releases, the market might lack the catalysts needed for significant price movements.
6. Volatility Index: Periods of low volatility can lead to sideways movements. The VIX (Volatility Index) measures market expectations for near-term volatility and can influence trading behavior.
7. Long-Term Trends: While short-term movements might appear sideways, longer-term trends can be more decisive. Investors often analyze both short-term and long-term trends to make informed decisions.
8. Market Efficiency: The stock market is largely efficient, meaning that prices incorporate available information quickly. This efficiency can lead to relatively stable prices in the absence of new and significant developments.
9. Market Participants: A significant portion of the market consists of institutional investors, who might engage in more stable and measured trading strategies, contributing to periods of sideways movement.

It’s important to remember that stock market behavior is inherently dynamic and influenced by a wide range of variables. While periods of sideways movement can be frustrating for traders seeking immediate gains, they are a natural part of market cycles. Investors and traders often employ different strategies to navigate various market conditions, including sideways trends, ranging markets, and trending markets.

My Conclusion :

So how does a trader can make his money if it is the only profession he has?

In the sideways stock market scalping experts only make money. Intraday scalper uses 1 minute time frame to fetch profits by investing a bigger amount for a very very short period of time, generally in minutes.

I hope you enjoy reading
Love and Regards
Mudit Gupta