Essential Course for Stock Trading! How to Choose Between Left-side and Right-side Trading?

In the investment circle, left-side trading and right-side trading are regarded as two classic strategies, and many people are confused about which is better. In fact, each has its own merits and is suitable for different groups of people. Let me explain.

Left-side Trading: A Game for the Brave

Advantages

1. More Opportunities for Big Profits: If you can buy in before the market hits the bottom or sell in time before it peaks, the profit margin is beyond imagination.

2. Cost Can Be Reduced: Entering the market before a reversal means the price you get is closer to the bottom, naturally lowering your holding costs.

3. Small Stop-loss Cost: Even if your judgment is wrong, because the entry price is low, the loss when stopping out is not significant.

4. More Trading Opportunities: You can trade even when the market trend is not clear, providing more opportunities.

Disadvantages

1. Not Low Risk: Entering the market when the trend is unclear carries a lot of uncertainty, and you may have prolonged floating losses or even be deeply trapped.

2. High Psychological Pressure: During the market bottoming phase, frequent fluctuations can bring great psychological challenges to investors due to floating losses.

3. High Analysis Ability Requirement: Requires deep analysis of the market and a strong capacity for risk tolerance.

Right-side Trading: The Choice for the Cautious

Advantages

1. Lower Risk: Entering the market after the trend is clear means you do not have to guess the market's bottom or top, increasing the success rate.

2. Stable Profits: Although you may miss out on some profits at the bottom or top, you can capture the main phases of the trend.

3. Less Time Cost: With a clear trend, trading decisions are easier to make, and holding time is also shorter.

Disadvantages

1. Limited Profits: Higher buying costs make it difficult to buy at the lowest point or sell at the highest point, limiting profit margins.

2. Easy to Chase Highs and Sell Lows: When the trend reverses, a delayed reaction can lead to buying high or selling low.

How to Choose?

If you have a strong risk tolerance and a deep understanding of the market, left-side trading may be more suitable for you; if you have a low risk preference and pursue stable returns, right-side trading is a better choice.

There is no absolute good or bad in investment strategies; the key is to combine your own risk preference, financial situation, investment experience, and market judgment to make a decision.

If you happen to come across this, feel free to follow for more investment insights to share later!