When prices fluctuate, sophisticated investors use a strategy called “ranging” to make money by capturing the difference between the high and low prices within a specific time frame. For example, a trader might buy a stock at $100 and sell it at $105, then buy it again at $102 and sell it at $107, and so on. This strategy can be profitable in sideways markets where prices move within a range but do not trend strongly in one direction.
Range trading is a popular strategy because it can be used in any market, and it does not require the trader to predict the direction of the market. Additionally, range trading can be a relatively low-risk strategy, as the trader is not betting on the market to move in a particular direction.