Which is better, trading left or right?Elaborate on the advantages and disadvantages of both

2022-05-31 0 By

In the investment process, we often contact about the left side of the transaction and the right side of the transaction, which is actually the division of the transaction in different periods of the stock, today we will specifically explain what is the meaning of the left side of the transaction and the right side of the transaction.The division of left and right trades is very simple. As we can see from the chart below, when prices fall and then bounce back to their highs, they form a “V” shape, which is similar to the smile curve.We take the lowest point as the dividing line. Trading to the left of the “V” is a left trade, and vice versa is a right trade.In fact, reversing the “V” also creates a dividing line, dividing transactions into left and right, but we’re going to focus on the “V” for today.The left side trades what adopt is to drop more buy the investment means of low cost continuously more, right side trades it is after the trend forms, go up decisively the investment means that buys.Both belong to different investment methods, each has its own advantages and disadvantages.01 Trading advantage on the left side: the operation will be relatively simple, if we have enough capital reserve, we just need to buy more and more to share the cost.Disadvantages: It can really test our patience, because the more we buy, the more we may suffer for a long time.What’s more, losing money for a long time will make us lose confidence and it’s easy to give up halfway.02 Right side trading advantage: right side trading is to enter the market after the bottom has been formed, so it will be relatively safe, and avoid the process of tolerance of floating losses.Disadvantages: the essence of right trading is mainly in the early stage of the formation of the rising trend to buy decisively, so it is very important to grasp the timing, on the one hand, it is difficult to judge the trend, the second is to enter the market too early, easy to judge the error but be set, and enter the market too late, easy to miss the market into chasing high admission.Compared with trading on the right side, trading on the left side will be simpler, while trading on the right side will test our investment ability more, and we need to grasp the timing of buying and selling.* Financial management is risky, investment should be cautious.The above are my personal views and are for reference only and do not constitute any investment advice.