3 Ways to Trade Both Sides of The Market

📈 TRADER PSYCHOLOGY

💡 Most traders are only focused on one direction, but here are three different ways to trade both sides of the market that could really improve your game:

⚡️ 1. Scalp Against the Position

Imagine you have a long-term bullish view on a particular asset—let’s say you're confident that Gold will soar over time. Yet, we all know that even the biggest rallies have steep corrections.

What can you do?

✨ Scalp against the position! Take 1/3 or 1/2 of your original size and trade it on the short side in another account. This way, you’ll constantly reduce your cost basis on the main trade while maintaining the core position through any corrections that occur.

🛠 2. The Portfolio Approach

Trade a mean reversion strategy with tiny, tiny size and a portfolio approach that will frequently put you on the opposite side of the market with similar pairs. No need to use stops—let the offsetting trades net out to a positive return. If you're trading forex, make sure you’re on the positive side of the carry. This way, you can collect roll and accrue additional profit to your trades. 📈

🤖 3. The Algorithm

A short-term time frame algorithm will often generate a buy signal while you’re in the middle of a sell trade, or vice versa. Instead of constantly flipping around and being subject to whipsaw, trade two accounts—one for buys and one for sells. This way, counter signals will offset some of the losses and provide a natural source of diversification, smoothing out the equity curve.

🧠 They say that a true sign of intelligence is being able to hold two contradictory concepts at the same time. There’s no doubt that this principle holds true in trading, where mental flexibility and psychological humility are key factors in long-term success. 🚀.