The left side and the right side in the stock market refer to two completely opposite trading strategies in the stock market. Generally speaking, buying more as the price falls is left-side trading. When many retail investors get trapped by buying stocks, most people’s solution to the trap is to buy more as the price drops, to spread the average price, and wait for the opportunity to reverse, or they have a premonition that there will be a trend coming, and while it is still in a downward trend Enter the market layout at the right time. This kind of counter-trend trading behavior is called left-side trading. Correspondingly, the trend trading behavior of buying more as it goes up refers to trading on the right side. There are pros and cons for both left-hand and right-hand trades. During the decline, the cost of trading on the left side is relatively low, it is close to the bottom area, and the safety factor is relatively high. However, it also faces the risk of buying too much and failing to buy the bottom in advance. Trading on the left is also called reverse trading. In the stock market, a rule that can continuously beat the market should be "the medium and long-term trend must". The advantage of trading on the right side is that the upward trend is obvious, and the probability of profit is high when buying. The disadvantage is that the cost of intervention is high when chasing high. After buying, the stock index often falls back, and the risk of chasing high is also very high. Right-side trading generally involves users when the stock price reaches a new high. At this time, it often catches up to the stage high, especially when facing short-term fluctuations. This is also the fundamental reason why only a few people make money in the stock market.
1. Profitable methods of two trading methods: For traders with small capital and focusing on technical aspects, it is more suitable to choose the right side of trading. For large funds, chasing orders after the trend is formed will make the point cost too high and make it difficult to exit. Therefore, it is necessary to make predictions in advance through fundamental analysis before the market trend is formed, which is the so-called left-hand trading. Therefore, it is recommended that short-term investments with small funds should mainly trade on the right side, and long-term investments with large funds should mainly trade on the left side.
2. Notes on stock trading:
1. Don’t buy too many stocks. Choose a sector that you are good at, as too many stocks can easily lead to distraction.
2. Set your own boundaries. Once there is a long-term decline, you must take action and not stay.
3. You must have your own judgment and opinion. Determine based on the market, not based on the news.