🚨🚨 Let's briefly talk about what left-side trading and right-side trading are.
💥 Left-side trading, also known as contrarian trading, refers to buying when the market is in a downtrend, without knowing when it will reverse. However, if the price seems reasonable, with enough appeal and safety margin, one might choose to buy at this point, which is called left-side trading.
🔥 Left-side trading (buying low and selling high) involves a lot of subjective prediction. During a downtrend, the cost of left-side trading is relatively low, being closer to the bottom area, with a higher safety factor, but it also faces risks of buying more and getting trapped, or failing to catch the bottom early.
⚡ Right-side trading refers to buying at the bottom of a price decline or selling at the peak of a price increase. This does not require predicting when the bottom or top will occur, but instead waits for the bottom or top to appear before making a move, which is known as right-side trading.
🌟 After successfully buying on the right side, one can gain profits directly, but might miss out on opportunities before the trade. The main risk of right-side trading is if one is unclear whether the low point is a local low or a long-term low, then chasing after a rebound may lead to higher costs than left-side trading. Therefore, when choosing right-side trading, it's essential to grasp the nature and extent of the direction.
🚀🚀 Characteristics of left-side and right-side trading:
⚠️ Left-side trading carries a greater uncertainty risk, high time costs, and high trading costs. Entering and exiting on the left, those who try to catch the top and bottom belong to subjective trading.
🧨 Right-side trading carries a smaller uncertainty risk, low time costs, and low trading costs. Entering and exiting on the right, those who chase after declines and increases belong to trend trading.
Thematic investment, entering on the right and exiting on the left, chasing increases and avoiding peaks, suitable for short-term speculation.
Value investment, entering on the left and exiting on the right, bottom-fishing and avoiding declines, suitable for long-term trading.
Investing has risks, short positions should be heavily weighted, long positions should be closed out reasonably, manage position sizes, leverage, better to earn less than to lose big!
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