In recent days, I have chatted with Sanlianggu friends, talked about the current trend of Big A, and then talked to the technical aspects. I found that everyone has mixed reviews and criticisms about various technical indicators. Some people think that KDJ index is good, while others think that MACD is good, each has its own words, and they also disdain for other people's methods.
While the market is closed, talk about trading. In Big A, there are news and technical schools. Retail investors of the news like to look for opportunities when reading news. Retail investors of the technology usually like to talk about technology and study technology. General techniques are divided into basic indicators, intermediate indicators, and advanced theories, but the technology is easy to learn. After real application, different people have different results after using it because of the gap in experience and cognition. It’s like the upward trend, using technical analysis, some people continue to be bullish and some people bearish.
technology is to realize the problem of how to buy, sell, and how to control risks in stocks. After summary, it is how to operate to win more and lose less. But operations are divided into left-side trading and right-side trading. Which one is suitable for retail investors?
Left trading
What is left trading? Also called counter-trend trading, I like to talk about buying low. The left-side trading in Big A is the behavior of three stock indexes falling from high to low, and when retail investors feel that they are low, they start buying.
It doesn’t have to wait for the trend, but it turns into a rising moment before starting trading. What retail investors need to do is to undervalue the stock price and the crisis is almost released. just buy at the bottom. Unlike the right-side trading, there is no need to chase the rise on the left trading, which is in line with the concept of selling high and buying low. When individual stocks rise higher, they sell off their chips and fall more, and they can pick up some chips.
Retail investors who often read my content know that I prefer to say that selling high and buying low means trading on the left. But trading on the left side does not mean buying casually. If a stock is at the beginning, buys when it falls, and picks up chips when it falls sharply, it is not considered a left-side trading. It can only be considered a blind buying.
trades on the left, and you must have your own method. It is not possible to trade at any point. Use resistance and support, chip distribution chart , etc. to find points. Retail investors have their own methods, and they can only use them together. As for which method is suitable for them, they will use which one.
Right-side trading
After talking about the left-side trading, talk about the right-side trading. Some people say that doing the right-side trading is the transaction of professional players. The left-side trading is the way of playing amateur players, right? No, the method does not care about good or bad, it depends on the person who uses it, and whether it is used correctly. Investing is about going through the process, but the result is what retail investors want. No matter how the process goes, the subsequent result is enough to make a profit. There is one thing I agree with
. Trading on the right is more difficult than trading on the left. Why? It is easy to chase the rise. Everyone will think that individual stocks that chase the rise will rise better than when they are falling. Isn’t it? This is the principle, but you should know that most of the main players are distributing chips at high places, not low places. How do you understand
? The main force must complete the trading steps, including five steps: stock price, low buying, fluctuation consolidation, pull-up, and distribution. If a retail investor, it is not easy to buy individual stocks and let the main force carry the sedan when the main force is pulling up. Most individual stocks start to rise at low levels. They either rise to the daily limit many times and cannot be bought, or they rise in a low-key manner. One day, retail investors see this stock rise sharply. They have risen a lot earlier, so they will stand guard after chasing the rise.
Currently, there are nearly 5,000 stocks in Big A, and they are dazzling. Some people have only bought a few stocks for a few years or more than ten years. After familiarizing themselves with the information of individual stocks, it is feasible to trade on the right side, but when they see hot spots, they will trade on the right side, and when they see the daily limit, the trading risk will be high. Which one is more suitable for retail investors,
?
My point of view, trading on the left is more suitable for retail investors. There is one reason. Most retail investors will not control risks when trading stocks, and buying at low prices is more suitable than chasing the rise. Think about it, if you buy the wrong stock and lose money, will you run away immediately if you lose a little? Or is it that the decline is so great that it can’t stand it, so just cut the liabilities? I'm afraid that most retail investors who cut their losses can't stand it and run away. They won't leave when they lose a little, at least most of the stock friends around me buy the wrong stock trading.
If, after trading on the right, stand guard at a high place and have to be unconfiscated for about one year, maybe three years. If I predict correctly, there are probably still people who have not unconfiscated since the Big Bear in 2015. But even if the people who bought it in 2018 are trapped, is the probability of unblocking it much higher? One advantage of buying low is that you don’t buy high. Even if you buy wrongly in the future, the probability of unblocking is high.
left trading has another advantage. As long as the position is well controlled, don’t buy at the accurate bottom, just buy at the rough bottom. When retail investors trade stocks, they need to find good buying points, but few people can have the strength every time and buy at the lowest point. As long as they can grasp it, they can outperform most people every time.
trading on the right side, there is no basic explanation, either buying in the middle of the rise or buying in the high place. Individual stocks rise in the middle of the rise, if the negative news comes due to listed companies, they will turn into high places, and the subsequent decline will continue. Even if the left-side trading continues to fall, it will control the position and buy at a low level, and the risks are controllable.
Therefore, my logic is to make a profit in stock trading, don’t want to get rich overnight, you must have a good attitude and endure the big market. Left trading and right trading are about trading. Left trading is suitable for most retail investors, while right trading is suitable for experts.
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