Today, I will tell you two common trading strategies-left trading and right trading. Please compare yourself.
0 1
The so-called left-handed trading refers to buying before the bottom of the stage and selling before the top of the stage, that is, buying before the market trend reverses or terminates.
Look at the picture, because the starting point and the ending point are on the left of the bottom and the top, it is called "left-handed trading".
We usually invest in funds according to valuation, which is actually a left-handed trading strategy. When the fund falls to a certain extent, although we can't know exactly when the bottom will appear, as long as the price is reasonable, we can start investing.
At the beginning, there will be a process of "quilt cover", but we don't care, and we are not afraid of short-term quilt cover, because the bottom will appear sooner or later.
When the market rises sharply, we feel that the price starts to be expensive, so we sell it in batches, clear the position before the trend reverses, and ensure that we can leave safely without making the last penny.
Therefore, buying on dips, selling on rallies and escaping from the top and bottom are common manifestations of left-handed trading. The advantage is that the cost is relatively low and it is not easy to miss the turning point.
02
Similarly, right-hand trading refers to buying the price after the bottom of the stage and selling it after the top of the stage, without predicting when the bottom and top will appear, that is, taking advantage of the trend when the market trend has formed, making money for the trend.
Because the starting point and ending point are on the right side of the bottom and top, it is called "right-side transaction".
For example, one of the biggest driving forces of the stock market is capital. Through the change of chips on the disk, you can capture the process of opening and shipping.
Once the trader on the right discovers that there is a heavy main chip below the current stock price (often high floating chips will be washed constantly at this time), he can boldly keep up. As the stock price rose higher and higher, the bottom chips gradually decreased to almost none. Instead, they gather at a high level and can leave.
The advantage of trading on the right side is that you don't need to predict the bottom and top, you just need to look at the trend and trend, and you can make money and reduce the time cost.
03
Left-handed trading and right-handed trading have their own advantages, and there is no absolute difference between good and bad. At the same time, they also have their own shortcomings:
The time cost of the former will be higher, and the judgment of the bottom and top may be wrong; The price cost of the latter is relatively high, and the judgment of the signal/trend may be wrong. Duoduo has always said that there is no perfect strategy, but we can't trade without strategy, just for fear that you will buy and sell blindly.
When doing left-handed trading, you should do a good job in long-term management of funds to ensure that you will not need this money urgently for three years.
In addition, in order to avoid "delisting", it is suggested that investment funds, convertible bonds or blue-chip stocks do medium and long-term transactions on a sufficiently high safety mat.
When trading on the right side, it has strong execution and will act immediately when it sees a reversal.
At first glance, trading on the right seems easy, so many people want to trade on the right. However, it should be noted that "buying funds or listening to news to buy stocks" should not be regarded as tracking the trend, nor should you leave the market early because you think the trend is over after one or two callbacks (at this time, it is very likely that you will be caught in the market when you see the trend continue). There must be clear, rigorous and scientific judgment standards and basis.