Is the left side better or the right side better? It is actually a very tangled question.
Subjectively, a person's personality, risk preference, behavioral habits... determine what trading model is suitable for him, and whether the degree of fit is high or low, which leads to the fact that different trading schools are indeed good or bad.
Just like, if a person has a good prospect for the development of his main business, a stable risk appetite and a stable mood, let him do the left side and pay attention to where the trend is going and where the top and bottom are every day.
The goal of the operation is to catch false spikes, V-reversals, and turning points. If you don't use your energy to do this sudden trend, you will easily miss the market. If you use your energy to pay attention to the trend, it will inevitably affect his work state. So can he adapt? He will definitely feel awkward.
So many people lose money because an unsuitable trading model either conflicts with their lifestyle or conflicts with their risk preference. Ultimately, this conflict will manifest itself in the form of losses and pressure, but it does not mean that there is something wrong with the person's ability, but that he has chosen the wrong route.
So is it meaningful to simply discuss whether the left logic or the right logic is better? It is meaningless. The key is whether your personality is suitable for radicalism or stability, and your lifestyle runs the cycle of intensity and frequency of what you do. It is very important.
If your personality and system don't match, it's easy to force yourself into a state of low confidence and anxiety. I've met many such friends who are struggling with trends every day. They always have judgments but are more afraid of making mistakes. They always hesitate to find certainty but never have confidence.
Therefore, no matter how stable a person's mentality is, sooner or later his rhythm will be disrupted by a trading pattern that he cannot control, and his rhythm will be gradually eroded by negative emotions.
On the other hand, if he does the right side and focuses on mid-line trend following, then based on the premise that "trends are low-probability events"
The frequency of opening positions will not be too high, and many entries do not need to be made immediately during the trading session. To a certain extent, you can detach from the market and plan in advance to follow the trend by placing orders at preset points.
Then, if you adjust a more reasonable amount of funds and make the opening frequency consistent with your lifestyle and risk preference, the trading status will obviously be better under low pressure. I think this is a point that is overlooked by many people.
As I said, many friends have had extremely advanced and excellent judgments on the trend, but in the end only a few people caught the chips and held their positions.
What is the difference? Is it a difference in technical ability? Experts can see more accurately? Not really!
The only difference lies in the strength of self-confidence. If a person does not even trust himself, how can he trust the system and believe that there are core laws in the market based on changes in human nature?
There are too many people who can understand the trend, but not many who dare to trust their own judgment unconditionally. When they cannot trust themselves, they will show a "many ideas, but no determination"
They are always looking for "more accurate" trading techniques so that they can participate in the trend and make money at any time, so that when they lack confidence, they can see some "opportunities" from the trend and build confidence from certainty.
But in fact, all transactions are carried out with doubts and suspicions. "What will happen" and "what should you do now to deal with it" are two dimensions that can coexist and do not affect each other.
To some extent, it is the compatibility of the unknown and the known. Ignore the things you cannot control and do the things you can intervene.
Just like a friend asked me, "I do trend trading, but the market has not shown any trend recently. What can I do?" As long as you are not the market maker, the only thing you can do is to rest where you are.
And from the perspective of objective trends, there is actually no such thing as "XX is better or XX is better" in trading, because the trend itself is public. If a certain model has significant profit effects or advantages, it must mean that the trend itself is clear. to comply with the rules
For example, if the profit effect of left-hand trading is significant, it must mean that the trend always runs within a certain framework. When the top reaches a certain resistance, it will fall back, and when the bottom falls to a certain support, it will rise.
In the end, the market showed an obvious oscillation pattern, but let's think about it, the trend is public and what will happen when a certain pattern is obvious?
Everyone can see that the trend follows a certain structure and has a certain profit effect, and then everyone can adjust their strategy and take advantage of this "rule"
What will happen in the end? As a trading model is widely used, profits are diluted. The market capacity is so large that everyone plays like this.
It turns out that if you catch the turning point on the left side and have a small stop loss, you can still get a large space. However, as the shock structure becomes clear, there will always be people who open positions first and close positions earlier.
For example, A sees the resistance at 2080 and is ready to sell, B considers, “many people are ready to sell at 2080, in case the deal fails”, so it is better to place an order at 2075 in advance, while C may have set a take profit at 2070
The same is true for opening a position. As the scale expands and competes with each other, the profit effect will gradually disappear and then be replaced by another fluctuation pattern. This is the essence of the market state that always switches between several categories.
Similarly, is it more advantageous to follow the right side? No, the probability of a trend appearing is not evenly distributed on the timeline. It seems that if you wait for a certain period of time, a trend will appear, and if you make a few wrong orders, you will make up for the loss with one order. There is no such balance.
Many trends are driven by unexpected events and changes in overall price expectations. But what if there are no major events for a long time, the supply and demand are balanced, and the situation is stable? Then it will show that "trends always die".
If you follow the right side, you will find that in a low volatility market cycle, you will find that the trend dies once after a breakthrough, and it always withers halfway. People who like to attribute things after the fact will think that the right side method is rubbish, and it is not as good as the left side with more opportunities and advantages.
In fact, it is just that the market accidentally switches to a certain state in a certain period of time. Sometimes it is low volatility with a big turning point, which is beneficial to the left, and sometimes it is high volatility, which is suitable for the right side.
If a strong one-sided trend appears due to some event in a highly volatile market, then you will find that trend trading has a great advantage for a period of time and the chances of a breakthrough strategy are very high. Or if the trend is weak and the breakthrough signal always fails and the market moves up or down in a zigzag pattern, then it is appropriate to intervene in the callback.
Therefore, different market conditions have different advantageous methods, but there is no absolutely advantageous method that can span all market conditions!
Just like the people who trade on the right side in the end, they will accumulate huge speculative positions as the trend turns from prosperity to decline, and concentrate them at a certain price to form a long position concentration area or a short position concentration area. When the price is broken, they will cancel the stop loss order and hand over the advantageous chips in their hands.
The mindset formed in trend trading is a weakness
So to put it bluntly, when a trend pattern in the market becomes clear, the "small number of people" who take advantage of this pattern will become the "majority" and their behavioral characteristics will be easier to predict, thus becoming the fat sheep in the eyes of others.
In this case, it is the time when the market volatility state switches. Therefore, due to the ability of "learning and iteration", there is no absolute advantage in the market. Trading type, unless you take advantage of the high threshold of rule advantage and technological advantage.
This is the embodiment of "uncertainty". Just like many friends say "prices are unpredictable", but they are actually changing the concept and trying to find the best way to deal with the market to establish certainty. But isn't the essence the same?
In fact, as I said, objectively speaking, if there is a type of transaction that has stable profits and great advantages, doesn’t it mean that the market maintains a certain fluctuation pattern in the long term to support its existence?
Open the chart and see this obvious pattern? If not, it doesn't exist.
Since objectivity does not exist, you can only start from the subjective and find a model that fits your lifestyle and risk preference. Define the market conditions you want clearly, make a diagram, remember it in your mind, and learn to stop when the market conditions do not match.
Ask yourself more questions: what is your market view, what level of trading do you want to do, and what level of trading does your lifestyle allow you to do?
If you control your trading frequency through the main trading cycle and keep your mentality and emotions in an optimal range, instead of ignoring the human execution link and pursuing "unable to do" things.
From a personal perspective, there is an optimal solution among the many routes and choices you face, a trading method that is compatible with your family, career and personality. Once you find it, you can become stable.
