Left-side trading VS Right-side trading, beginners must not blindly catch the bottom!
What do the terms "left-side trading" and "right-side trading" mean? Simply put, they are completely different trading strategies.
1. What is left-side trading?
Left-side trading involves catching the bottom during a market's one-sided decline, meaning that when the price of a cryptocurrency is plummeting, you boldly enter the market, betting on a rebound. The earlier you catch it, theoretically, the greater the profit, but the question is, how do you know when this decline has reached the bottom? It's like driving in the dark, where the risks are naturally higher; with one misstep, you might get "buried alive"—what you think is the bottom could just be halfway down the slope.
2. What is right-side trading?
Right-side trading emphasizes "stability." It involves waiting for the market to stabilize after a decline before entering. Typically, one confirms that the market is no longer continuing to decline after a second retest of stability before choosing to buy. Although entering later may reduce potential profits, the relative risk is much lower.
3. Which is more suitable for beginners?
It is well known that if left-side bottom fishing is successful, the returns can be high, but most people often catch it halfway down. Especially for beginners, it is easy to fall into this trap: thinking the low point has been reached, only for the market to continue dropping. Remember, there is a saying in the cryptocurrency world: "Never guess the bottom," because the bottom must be confirmed by the market, not by your momentary impulse.
Therefore, for beginners, right-side trading is a more stable approach. After the market has undergone a round of decline, when it can no longer drop, with weakened downward momentum, and even shows reversal signals, entering at that time is a safer choice.
Left-side trading is suitable for seasoned experts who dare to take high risks. Beginners should honestly learn right-side trading, ensuring they do not incur losses before discussing profits. Every bit of profit in the market is an equivalent exchange of risk and patience.