What is left side trading and what is right side trading?

大白熊日记 · 2023-05-12T00:05:38.000Z

What is left-hand trading and right-hand trading? Transactions on the left: Trading on the left is a kind of reverse trading. It is generally operated "before the trend turns", selling in the middle and late stages of rising, and buying in the middle and late stages of falling, which is the so-called The method of operation is "when others are greedy, I will be fearful; when others are fearful, I will be greedy". Therefore, there is a more vivid term for trading on the left side, which is called buying a set, because trading on the left side is when the price is falling. We don’t know when the bottom will appear, but we already feel that the price is reasonable and has enough attractiveness and safety margin. , then choose to buy it. Although the safety factor of doing so is relatively high, it also faces the risk of being cheated by buying more and failing to buy the bottom in advance.

What is left side trading and right side trading?
Left side transaction:
Left-side trading is a reverse trading, which is usually done before the "trend turns". It is sold in the middle and late stages of an uptrend and bought in the middle and late stages of a downtrend.
The operating method is "When others are greedy, I am fearful; when others are fearful, I am greedy."
Therefore, there is a more vivid term for left-side trading, which is called buying a trap. Because left-side trading means that when the price is falling, you don’t know when the bottom will appear, but you already think the price is reasonable, attractive enough and has a safety margin, then you choose to buy it. Although the safety factor of doing so is relatively high, you also face the risk of buying more and more traps, and failing to bottom out in advance.
Right side trading;
Right-side trading is a trend-following transaction, which is usually carried out after the "trend turns", that is, buying at the beginning of the market start-up when it just starts to rise and exiting the market with profits at the beginning of the market decline.
On the right side, if the transaction is successfully bought, you will make a profit directly, but you will miss the opportunity before the transaction.
The main risk of right-side trading is that if you are not sure whether the low point is a local low or a long-term bottom, the cost of being trapped by the rebound is higher than that of left-side trading. Therefore, if you choose right-side trading, you must grasp the nature and magnitude of the rise.
Therefore, on the K-line, the left side transaction is generally to buy on the left side of the lowest point and sell on the left side of the highest point;
The right side transaction is to buy on the right side of the lowest point and sell on the right side of the highest point.
The representative figure of left-side trading is Buffett, which is essentially value investing. From 2002 to 2008, Buffett's buying low and selling high on PetroChina was a perfect interpretation of left-side trading.
The representative of right-side trading is Gann. Gann’s most representative words are: “Don’t be afraid to buy high, don’t be afraid to sell low. As long as the direction does not change, your trend-following order is correct.”