Current location - Trademark Inquiry Complete Network - Futures platform - What do you mean by trading on the right and trading on the left?
What do you mean by trading on the right and trading on the left?
Trading on the right is a follower of the trend, not a predictor. When there is a bubble in the stock market, you don't often predict the top, but sell the stock at the second highest price after the top is formed, instead of pursuing the highest price. It seems silly, but it is the best strategy in practice. The so-called left-handed trading, also known as reverse trading, is characterized by entering the market directly without waiting for the price to turn when the price reaches or is about to reach the so-called important support point or resistance point. On the other hand, right-hand trading is just the opposite. Most domestic investors adopt the right-hand trading rule, that is, when they see the stock price hit a new high, they understand that the market has started, and then they start chasing stocks, but they often catch up with the stage high.

Right side transaction

Right-handed trading is a common trading operation rule in the securities trading market. The advantage is that you can chase up the strong gold price or stock price and buy it on the way to a good price. The disadvantage is that once the situation is misjudged, there is a risk of high quilt cover. Suitable for short-term investors.

Right-handed trading is often used in all transactions such as stocks, futures, foreign exchange and gold contracts. It can be represented by k line.

Take stocks as an example. After a period of rising, the stock price takes the highest point of the stock price as the top, and when it is represented by a K-line, it obviously forms a top (like an inverted letter' V'), and then the stock price falls back, forming a group of downward K-lines. Then the two sides of the top are called left and right sides, and selling stocks after confirming the formation of the top is called right trading.

Similarly, the stock price forms a bottom after a round of decline, and buying stocks on the right side of the bottom (like the letter "V") is also called right-hand trading.

Left trading

Left-handed trading, also known as reverse trading, is found in practice that most investors in China adopt the right-handed trading rule, that is, when they see the stock price hit a new high, they understand that the market has started, and then they start chasing stocks, but they often catch up with high points, especially in the face of short-term fluctuations, which is the fundamental reason why only a few people in the stock market make money.