Many people have traded in the crypto market for a long time, losing money chaotically, and end up confused. I ask: Are you left-side trading or right-side trading? The other party is bewildered: what's left-side and what's right-side? I feel a bit helpless; if you can't even understand left-side and right-side and want to make money in crypto, brother, is that not just relying on luck?
Know yourself and your enemy, and you will never be defeated; if you don't know your enemy and yourself, you will always be defeated. The crypto market is a battlefield; if you don't understand yourself or the market, can you expect to get rich? Is that possible? Therefore, everyone engaging in crypto trading must first clarify what suits them. Today, let's discuss left-side and right-side trading to help you find direction.
1: What are left-side trading and right-side trading?
Left-side trading: counter-trend operation, simply put, you must act like a 'prophet' and predict that the coin price will reverse, entering the market early. For example, if BTC drops to $90,000 and you think it will bounce back, decisively buy at the bottom; or if it rises to $100,000 and you think it will drop, sell in advance. This method is high-risk, high-reward; a successful trade can yield big profits and you can boast about your 'divine prediction,' but the difficulty is high; you either need exceptional patience to lay in wait or precise predictive abilities. In summary: be Zhuge Liang beforehand, guessing the ups and downs, and trade a step earlier.
Right-side trading: trend-following operation, waiting for the trend to be clear before entering the market. For example, if BTC rises to $90,000, breaks through a resistance level, and the trend is confirmed upward, you chase in; or if it breaks a key support level, and the trend is downward, you sell out. Right-side trading has high certainty and low difficulty, but the returns might be lower because you're always a step behind, only able to capture profits in the middle, and you can't boast about how great you are. In summary: be Zhuge Liang after the fact, buy only after the price rises, and sell only after it falls.
For example, the professional short-seller, the influential figure Liangxi, is a representative of left-side trading. When the market is in panic and prices plummet, he might instead make a huge profit. The representatives of right-side trading can be said to be most of the stable traders, like some technical analysts, who prefer to use moving averages and MACD to confirm trends before taking action, ensuring steady wins.
Below is a comparison chart of left-side and right-side trading in crypto trading, simple and clear:
2: Should we use left-side or right-side trading for crypto?
After reading the above, some may ask: should I choose left-side or right-side? There is no absolute good or bad here, only what suits you.
Left-side trading is more suitable for two types of people: one is a true big player with strong predictive abilities who can accurately grasp the turning points of coin prices; the other is pure newcomers who think they are great, dare to bottom fish without understanding anything, and end up either making a fortune or losing everything.
Right-side trading is more suitable for most people, with low risk and high winning rates. Although the returns are not as exaggerated, at least you won't suffer too much loss.
I have mostly used right-side trading in the crypto market. Why? Because it's simple, has a high winning rate, and it's easier to make money. Although I might be a bit slow and earn less, it's solid! Especially in a trending market, right-side trading works particularly well, like when BTC continues to rise; following the trend steadily brings in profits.
Left-side trading is more suitable for true value investors. For example, if you believe in a project and feel it is undervalued, when the coin price hits the floor, you build your position gradually, buying more as it drops, and when the market warms up, you make a big profit. Some institutional investors or players with large capital often use left-side trading because they need to accumulate shares and cannot chase highs; otherwise, they raise the price as soon as they buy, leading to high costs.
But I have to complain, many people get it completely wrong when trading crypto: they chase after prices that are soaring and are afraid to buy when prices drop. This is not left-side trading; it's purely chasing highs and cutting losses, and it’s no wonder they lose money!
3: How to use right-side trading in crypto? My experience to share.
Since I am accustomed to right-side trading, let's focus on how to make good use of right-side trading in crypto trading:
Stay away from volatile markets: The biggest pitfall of right-side trading is a choppy market. If the price breaks through today and you buy, it might drop back tomorrow, and you hit your stop-loss; after a few days, it breaks through again, you buy again, and it drops back... A volatile market is a nightmare for right-side traders. Therefore, I only choose strong coins and act when the trend is clear; I directly pass on the choppy ones.
Act decisively: Once the trend is confirmed, such as when the price breaks through a key resistance level, I will enter the market immediately, even if the price has already risen significantly. Don't wait for a pullback, as waiting often means missing out. The crypto market changes rapidly, and being a step slow might mean missing out on significant profits.
Don't pursue maximum returns: Right-side trading can only eat the body of the fish; the head and tail are not yours. Don't think about bottom fishing and topping out; that's not how right-side trading works. Being able to secure some profits in the middle is enough; steady and secure profits are the way to go.
Before trading, clarify whether you are suitable for left-side or right-side trading.
In the crypto market, left-side trading is suitable for those who have strong predictive abilities, large capital, and can decisively stop losses, such as big players and institutions; right-side trading is more suitable for ordinary people, with lower risks, higher winning rates, and stable profits.
No matter which one you choose, you must first understand yourself and find the right path. Don't rush in confused; that's not trading, that's giving away money! Next time someone asks you 'left-side or right-side,' don't be bewildered; just throw out this article and tell them: figure it out first before trading, or be prepared to lose!
Click to enter the Van Binance chat room 2 group
Join the chat room for a chance to win exquisite Binance merchandise regularly!
