Left-side trading and right-side trading are two different trading strategies, each with its advantages and disadvantages. Below is a detailed comparison:
Advantages and disadvantages of left-side trading • Advantages: • Potential for large profits: By buying at market bottoms or selling at tops, there is an opportunity for greater profits. • Lower costs: Striving to enter the market before turning points often allows for prices closer to the bottom, thereby reducing overall holding costs. • Small stop-loss losses: Even if judgments are incorrect, losses during stop-loss are relatively small due to lower entry points. • High flexibility: Trades can be made before market trends are clear, increasing trading opportunities. • Disadvantages: • High risk: Since trades occur before market trends are clear, there is significant uncertainty, which may result in prolonged unrealized losses or even getting trapped.
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