Left-Side Trading vs Right-Side Trading
The essential difference between left-side and right-side trading is prediction vs following. Simply put, it's about different entry timing.
Left Side: "Guessing the bottom" during a downturn and "escaping the top" during an upturn. Its core is "contrarian thinking". When the market is panicking and falling, left-side traders will anticipate the bottom in advance and gradually buy in. Conversely, when the market is surging, they will gradually sell as initial top signals appear.
Right Side: The "follower" who goes with the trend. Right-side trading is more like a surfer waiting for the tide to change direction. It requires investors to enter only when the trend is clear and an upward channel is formed.
Left Side: Low cost, high profit, but may get caught in the middle. Strict position control and wide stop-losses are necessary.
Right Side: High cost, stable profit, but prone to getting stopped out by spikes. Decisive execution is required to prevent false breakouts.
Left-side trading is a practice for "contrarian believers" that demands iron discipline and a continuous cash flow, suitable for seasoned traders with ample cash flow, on-chain data detectives (who can monitor whale wallet movements), and well-informed individuals.
Right-side trading is the battlefield for "trend workers," relying on cold machines and decisive execution, suitable for office workers, quantitative programmers, and emotionally stable "robots".
If left-side trading judgments are incorrect, one may fall into the predicament of "buying more as prices fall, and getting trapped more as they buy".
The advantage of right-side trading is high certainty, but the downside is a higher entry cost.
Thus, I currently utilize a combination of left-side ambush and right-side scaling, with long positions built on the left side and short positions chased on the right side to achieve cycle matching, reducing average cost while capturing major uptrends.
Every trading strategy has its pros and cons, and it's more about choosing based on one's own situation. Once a strategy is mastered, frequent changes are not recommended.
Those who live longer are the winners.
#交易策略 #交易心得 #投资纪律 #加密货币