Many people have been struggling in the cryptocurrency space for a while but are unaware of the reasons for their losses. When asked, 'Do you usually engage in left-side trading or right-side trading?' many cannot answer.
In fact, whether it is investing or trading, understanding your own operational mindset is crucial. Otherwise, you'll just go with the flow, making some profits if you're lucky, or losing everything if you're not. Today, let's discuss what left-side trading and right-side trading are, and help clarify the direction for everyone.
What is the difference between left-side trading and right-side trading?
Left-side trading, simply put, is counter-trend operation. When prices continue to fall, buying in advance when you think you are near the bottom; when prices rise to a certain height, selling in advance when you think it is about to peak. This method requires strong judgment skills and psychological preparedness to endure short-term fluctuations. If done well, the returns can be very considerable; but if the judgment is wrong, one may be stuck for a long time.
Right-side trading is about going with the trend. Wait until the trend is clear, such as breaking important resistance levels or falling below support levels, before entering. Although it is a step slower than left-side trading, the direction is clearer, and the overall success rate is higher, making it more suitable for those who wish to operate steadily.
Simply put, left-side trading is about positioning in advance, while right-side trading is about confirming and then following up; each has its advantages and disadvantages.
For example, some experts who excel at buying low and selling high, and who have a very precise grasp of market rhythms, are mostly left-side traders; while those who focus on trend judgment and rely on moving averages and indicators to assist their operations tend to favor right-side trading.
So which method should one choose?
In fact, there is no absolute answer; the key is to see what rhythm suits you.
Left-side trading is suitable for those who have a deep understanding of the market and can make independent judgments about trends, especially those who can endure short-term fluctuations and are not easily swayed by market sentiment. Conversely, if judgment is weak and position control is poor, one can easily get trapped by continuous declines.
Right-side trading is more suitable for ordinary investors. Although it may not capture profits at the 'lowest point', the overall rhythm is steadier, avoiding many unnecessary fluctuations and risks. Especially in clear trending markets, like during a Bitcoin bull market, following the trend can yield good returns effortlessly.
Personally, I tend to lean more towards right-side trading. I operate only after confirming the trend, without deliberately trying to catch the bottom or fantasizing about selling at the highest point. Although this may seem 'slow', it allows for a more relaxed overall mindset and can reduce many unnecessary losses.
Left-side trading is usually a method that institutions and large capital players are better at; they can gradually position themselves when the market is sluggish, waiting for a recovery. For ordinary investors, recklessly trying to catch the bottom is often a high-risk operation, and any misstep can lead to being stuck in a losing position.
If you want to practice right-side trading, here are a few tips:
First, choose currencies with clear trends and avoid frequent operations in volatile markets. During fluctuations, right-side trading can easily lead to frequent stop losses.
Second, decisively enter the market when you see effective breakouts or trend formations; do not hesitate too long and miss the opportunity.
Third, maintain reasonable expectations. Right-side trading captures mid-term profits; there is no need to chase the bottom or sell at the highest point. Consistent profits are more important.
To summarize:
Left-side trading is suitable for those who are precise in judgment and can withstand volatility; right-side trading is suitable for those who wish to operate steadily and follow trends. The most important thing is to choose a suitable method based on your personality and abilities, rather than blindly mimicking others.
In the cryptocurrency space, choosing a trading method that suits you is more important than anything else. Take your time, find the right direction, and you'll naturally go further.