​Strategic choice: In a dilemma, how to break the situation in the trading direction?

The core of trading decisions often revolves around a key question: Should we adopt a left-side trading strategy or a right-side trading strategy? Left trading, also known as reverse trading, is in sharp contrast with right trading (trading with the trend). The paths of the two are very different, so many traders do not know how to choose. The key to this is to find the one that is consistent with personal trading habits. Next, let’s take a closer look at the different characteristics of the two strategies!

Left-side trading: Going against the market

The trader on the left will make an advance layout near important support points or resistance points based on technical analysis or prediction of market sentiment before the price has formed a clear turn.

The core of this strategy is to capture the “value depression”, that is, enter the market where the market generally believes that the price is attractive, aiming to go long at lows or short at highs to achieve excess returns.

Investor masters who successfully use left-side trading often capture the turning point in the market before everyone with their deep market insight and firm belief.

However, this also requires traders to have higher risk tolerance and keen market perception, as early entry means possible to face longer waiting times and larger price fluctuations.

Trading on the right: Go with the trend

Compared with the aggressive trading on the left, the trading on the right appears to be more stable and conservative. It follows the principle of “trend is king”, that is, after the price has clearly formed an upward or downward trend, then enter the market.

The trader on the right confirms the establishment of the trend through technical analysis and other means, and conducts buying or selling operations based on it, striving to make profits in the continuation stage of the trend.

The advantage of this strategy is that the risk is relatively low, because once the trend is formed, it often has a certain inertia, allowing traders to operate in a relatively certain environment. But likewise, right-side trades may also sacrifice some potential returns due to missing the best entry point, and always be wary of trend reversals.

Key considerations for choosing a strategy

Trading style and risk preference:

Aggressive traders may prefer left-side trading to enjoy the sense of accomplishment brought by early layout; while conservative traders may prefer right-side trading to ensure operation in a relatively safe environment.

Fund scale and management capability:

Large-value funds often pay more attention to stability, so trading on the right may be more suitable; while small-value funds may be more suitable for trying left-value transactions due to their higher flexibility.

Market environment and personal experience:

Different market environments have different impacts on the two strategies, and traders also need to make judgments based on their own market experience.

The two methods have their own advantages. The key to choosing lies in our trading style, capital status and risk preferences. Traders with conservative personality and limited funds may be more suitable for trading on the right side, while traders with radical personality and large amount of funds may consider trading on the left side. But no matter which strategy you choose, continuous learning, risk management, psychological quality cultivation, and the combination of simulation and practical combat are still indispensable. #EagleTrader##TraderStrategy##Left Right##Picking Exam#