Left-side & right-side trading is a classic example of how traders & investors handle risk & market psychology. Both approaches hav their merits & canbe effective in different market conditions. Here's howIviewthem:
Left-Side Trading:
• Approach: Left-side trading involves entering e market before a trend is confirmed, oftenbuying when a stock is experiencing a dip or downturn, anticipating a reversal before the majority of emarket catches on. Thisrequires a high level ofconviction & ability to withstand psychologicalpressure, as catching "falling knives" can result in significant losses if e trend continues downward.
• Advantages: e potential for large profits if e reversal happens & you're in early. This strategy often appeals to more contrarian investors who believe e market overreacts.
• Risks: It can be very risky, especially for beginners, timing the market perfectly is incredibly difficult. Additionally, entering 2 early can lead to bigger losses if e stock continues to decline.
Left or Right-side Trading: Which Approach Do You Prefer?
Left-side trading refers to entering the market early, predicting changes before a trend is confirmed. Right-side trading, on the other hand, waits for the trend to be confirmed before making a move. This phenomenon often occurs in the stock market. For example, Tesla recently dropped to $217, with public sentiment claiming it was worthless and everyone waiting for it to go below $200. Tesla was largely ignored. However, two days ago, Tesla rebounded to $270, and people started buying again.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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