Trading Strategy: The Choice Between Left and Right
Left-side trading and right-side trading are two completely different strategies, each with its own advantages and disadvantages.
Left-side trading belongs to counter-trend operations, where traders predict market reversals and buy or sell in advance, characterized by high risk and high reward. If the judgment is accurate, it can not only yield substantial profits but also showcase one's foresight; however, this strategy is challenging, often requiring long periods of patience to ambush, akin to being a "preemptive Zhuge Liang."
Warren Buffett, the stock god, is a typical representative of this; he often increases his positions against the trend during market crashes that trigger panic, gradually selling after the market rises, embodying the philosophy of "be greedy when others are fearful, and be fearful when others are greedy."
Right-side trading, on the other hand, involves waiting for clear trends before acting in accordance, entering the market only after confirming the market direction, which is more certain and easier but with relatively limited returns, akin to being a "post-event Zhuge Liang."
Gann is a representative figure of right-side trading, emphasizing following the trend.
As for which is better between left-side and right-side trading, there is no absolute answer; the key is whether it suits oneself. Left-side trading is often chosen by both experts and novices, with experts leveraging it for high returns, while novices may attempt it due to misjudging their own abilities.
However, most people are more suited for right-side trading due to its lower risk and stable returns. Left-side trading is suitable for genuine value investing, such as systematic fund investments, where one continues to invest during fund declines until it rises again. It is also suitable for investors with significant capital, allowing them to gradually accumulate shares during downturns. Additionally, it suits those with strong predictive abilities who can decisively cut losses and pursue excess returns.
For right-side trading, key points must be mastered. First, one should stay away from volatile markets, as its "slow reaction" characteristics can lead to repeated stop losses in such conditions. Second, one must decisively enter the market when a breakout is detected to avoid missing out. Finally, one must accept the reality that maximizing returns may not be possible; right-side trading aims to capture the "body of the fish" within the trend, and attempting to catch the "head" and "tail" of the fish would go against the essence of right-side trading.
