Left Side Trading
Definition: Left-side trading refers to entering the market before the market confirms a trend reversal. This strategy usually relies on the judgment and prediction of investors, expecting to enter the market before the price hits the bottom or peaks, so as to obtain maximum profit.
Features:
High Risk: As the trend has not yet been confirmed, the market may continue to move in an unfavorable direction.
High returns: If the prediction is accurate, left-side trading can often catch the starting point of the trend and obtain greater returns.
Dependence on analysis: Left-side trading usually relies on technical analysis or fundamental analysis, and investors need to have strong market insight.
High Risk: As the trend has not yet been confirmed, the market may continue to move in an unfavorable direction.
High returns: If the prediction is accurate, left-side trading can often catch the starting point of the trend and obtain greater returns.
Dependence on analysis: Left-side trading usually relies on technical analysis or fundamental analysis, and investors need to have strong market insight.
Applicable scenarios: Left-side trading is suitable for experienced investors who are willing to take high risks, especially in cases of large market fluctuations.
Right side trading
Definition: Right side trading is entering the market after the market trend has been established. Investors usually wait for the market to confirm a trend reversal (such as breaking through a key price) before trading.
Features:
Low Risk: Since the trend is already confirmed, the risk of trading on the right side is relatively low.
Lower returns: Trading on the right side may miss the initial stage of the trend compared to trading on the left side, so the returns are relatively lower.
Stability: Right-side trading is suitable for more conservative investors who pay more attention to stability and certainty.
Low Risk: Since the trend is already confirmed, the risk of trading on the right side is relatively low.
Lower returns: Trading on the right side may miss the initial stage of the trend compared to trading on the left side, so the returns are relatively lower.
Stability: Right-side trading is suitable for more conservative investors who pay more attention to stability and certainty.
Applicable scenarios: Right-side trading is suitable for more conservative investors, especially when the market trend is clear.
For example, if the support level of BTC is 50,000, when it falls below 50,000, I will buy a short order or increase my position if I already have a position.
Left-side trading emphasizes "preemptive strike" and is suitable for investors with strong risk tolerance and market forecasting ability; while right-side trading is more stable and suitable for investors who pursue certainty and are willing to sacrifice some profits in exchange for safety. However, there are often not many good trading opportunities in the right-side market in a volatile market.
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