Recently, I encountered a very interesting phenomenon: many people have been struggling in the crypto space for half a year, and their capital is almost gone!!!
I asked them: "Are you doing left-side trading or right-side trading?" As a result, 90% of them looked confused and didn’t even understand the most basic trading strategies, yet they dared to go all in in the crypto space? Is this not gambling?
Today, let’s talk about this key issue that determines your profits and losses.
1. Two completely different profit-making logics
Left-side trading: Being the market's "prophet"
Core logic: Positioning ahead of trend reversals
Typical operation: When Bitcoin drops to $70,000, you feel it has bottomed out, decisively buying; when it rises to $90, you feel it has peaked, escaping early
Advantage: Buy at the lowest point, sell at the highest point, maximizing profit space
Fatal flaw: Requires a very strong market sense, 90% of people will buy halfway up the mountain
Right-side trading: Being a smart "follower"
Core logic: Wait for the trend to be confirmed before entering the market
Typical operation: Chasing the rise after Bitcoin breaks the $70,000 resistance, stopping loss after breaking the $60,000 support
Advantage: High certainty, low risk
Disadvantage: Always a step behind, limited profit space
Key data: Statistics show that in the 2021 bull market, retail investors using right-side trading had an average return rate 47% higher than those using left-side trading.
2. Why are 90% of people trading incorrectly?
I observed a terrifying phenomenon: the vast majority of retail investors are trading in the most dangerous way—
Doing right-side when they should be left-side: not daring to buy when the price drops 30%, waiting until it rebounds 50% to chase high
Doing left-side when they should be right-side: rushing to take profit right after breaking resistance, missing the main upward wave
After three years of practical experience, I have summarized these iron rules:
Left-side trading survival rules
Only build positions in batches at major support levels
Must set hard stop-losses
Position management is the lifeline
Right-side trading golden principles
Only do confirmations after breakouts
Use ATR indicator to set dynamic take-profits
Must decisively exit when the trend breaks
Reflect on your recent trades, are you doing left-side or right-side? Or just blindly trading?
What were the results?
There is an old saying in the crypto space: "Money made by luck will eventually be lost by skill." Establishing a correct trading system is the way to survive in the long run.
