💥 Left-side trading: A game for the aggressive.
Advantages:
1. Potential for substantial returns: If one can accurately predict market turning points, buying in advance at the bottom or decisively selling before the peak arrives, it is possible to achieve excess profits.
2. Significant cost advantage: By making forward-looking judgments on market trends, entering the market before the turning point often allows for prices closer to the bottom, effectively reducing holding costs.
3. Small cost of stop-loss: Even if judgment is incorrect, due to the lower entry price, the losses incurred during stop-loss are relatively controllable.
4. There are many trading opportunities: There is no need to wait for the trend to become completely clear; flexible trading can occur during the stage when the trend has not been established, greatly increasing investment opportunities.
Disadvantages:
1. High risk factor: Since entering the market when the trend is not yet clear, there is significant uncertainty, and investors may face prolonged account losses, or even deep entrapment.
2. Significant psychological test: During the prolonged fluctuation period of market bottoming or topping, continuous floating losses can bring enormous psychological pressure on investors, testing their mental quality.
3. High professional requirements: Left-side trading requires investors to have a solid foundation in market analysis, keen insight, and a strong ability to bear risks.
💥 Right-side trading: A choice for the prudent.
Advantages:
1. More controllable risks: Entering the market after the market trend is clear avoids blind guessing at the bottom or top, significantly reducing trading risks and increasing investment success rates.
2. More stable returns: Although one cannot capture the lowest and highest points of the market, it is possible to steadily grasp the main swings of the trend to achieve relatively stable profits.
3. Saves time and effort: Once the trend is established, trading decisions are relatively simple and direct, with a shorter holding period, effectively saving time costs.
Disadvantages:
1. Limited profit potential: Since the buying price is not at the lowest point and the selling price is not at the highest point, the overall profit margin is relatively restricted.
2. Easy to make mistakes in operations: During the trend reversal stage, if reactions are not quick enough, it is easy to buy at high prices or sell at low prices, leading to unnecessary losses.
Target audience
- Left-side trading: Suitable for investors with strong risk tolerance, in-depth research on the market, and willingness to invest against the trend.
- Right-side trading: More suitable for investors with a lower risk preference, seeking stable returns, and valuing investment certainty.
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