Question
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Is small range risky for trading? Why?
1 Answer
<p>You might attempt to range trade by purchasing a stock/pair at a price, then selling if it rises. You’d repeat this process until you think the stock will no longer trade in this range. Range trading is an active investing strategy that identifies a range at which the investor buys and sells at over a short period. A very particular risk of small range trading is that it requires precise market timing, which in this case means knowing when and for how long a stock or other investment might trade between 2 prices. Range trading can result in losses if …</p>
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