When you open an order, do you do it purely based on your feelings, or do you have your own strategy? If you do it based on your feelings, it depends on luck. If you use a strategy, see which one you are more suitable for. The characteristics, difficulties, and requirements for retail investors of the two trading strategies of left-side trading and right-side trading are as follows:
- Left-side trading:
- Characteristics: space measurement, capital division, rhythm control, key point grabbing, etc.;
- Difficulties: Overcoming fear, accurate space measurement, accurate grasp of market rhythm and skills of grabbing points;
- Requirements for retail investors: It seems difficult but actually easy.
- Right-side trading:
- Characteristics: easy to understand and learn, but more mistakes than correct;
- Difficulties: In the confirmation technology, the weaknesses of human nature are not taken into account;
- Requirements for retail investors: In the conventional education received, they have not received real learning about the true and false identification of indicators and patterns, so it is difficult to distinguish the true from the false.
The comparison of the two trading strategies is as follows:
- Risk: The left side transaction bears a greater risk of uncertainty, while the right side transaction bears a smaller risk of uncertainty;
- Time cost: The left side transaction has a high time cost, while the right side transaction has a low time cost;
- Transaction cost: The left side transaction has a low transaction cost, while the right side transaction has a high transaction cost;
- Trading method: The left side transaction is left-in-left-out, and those who escape the top and buy the bottom are subjective transactions; the right side transaction is right-in-right-out, and those who chase the rise and sell the decline are trend transactions;
- Applicable situations: Theme investment, right-in-left-out, those who chase the rise and escape the top, are suitable for short-term arbitrage; value investment, left-in-right-out, those who buy the bottom and sell the decline, are suitable for long-term buying and selling.