What is the side market?

Side markets are simply investment and cash markets that go through a period of time when there is no change in stock prices. Sometimes referred to as a flat market, the side market can be an interesting challenge for investors who want to achieve some permanent profit from their investment. The side market is not a new phenomenon, but extends to the earliest years of organized and structured investment markets.

Because the movement of prices per stock is flat during the side market, investors must use strategies that are very different from approaches that work in an unstable market situation. One way to deal with the extended phase of horizontal price movement is the use of lever effect when purchasing and selling shares. This is especially true when it comes to solving the purchase of shares on a margin.

This application still brings some risk if the signals of current market trends are read on the side drunkenly. For example, small movements by purchasing limited shares on margin can lead to a modest return even if it isthe flat market. At the same time, if the situation is not properly evaluated, the loss can easily be double the initial investment before solving a flat trend and a certain type of movement up or down.

For some investors, the side market can serve as a relief from business activities. This is especially true if the investment portfolio already contains stocks and other securities that the investor wants to hold for a long time. In this case, the investor is simply satisfied with any small amount of return and does not try to buy or sell to get other shares, but simply maintain the status quo. At the same time, the subtle investor attempts to move the market for the completion of the period of horizontal movement. In this way, the investor can plan a strategy that can be implemented as soon as it is clear that the market is moving in a certain direction.