A picture to help you understand the difference between left-side trading and right-side trading.

Left-side trading: act before the trend reverses (buy low, sell high, going against the trend)

Right-side trading: Wait for the trend to reverse and confirm before taking action (follow the trend)

The main difference between the two:
❚ The win rate is completely opposite to the odds.

Left-side trading: Low win rate (30%-40%), but once you catch a major bottom/top, the odds are extremely high (5x-10x+).

Right-side trading: high win rate (55%-70%), but medium odds (mostly 1-3 times).
The mindset and capital requirements are worlds apart.

Left-side trading: Requires strong psychological quality + sufficient cash flow, able to withstand floating losses of 50% or even 80% and continue to increase positions.

Right-side trading: a friendly mindset, small pullbacks, allowing ordinary people to sleep well.
Different signal trigger points

Left-side trading: positioning in advance based on leading indicators (panic sentiment, extreme volume, historical valuation bottoms, policy bottoms, etc.).

On the right side: enter the market based on confirmation signals (breakthrough of moving averages, trend lines, significant bullish candles, new highs/lows, increased trading volume, etc.).
❚ The target audience is completely different.

Left-side trading: suitable for investors with large capital, long holding periods, professional investors, and natural contrarians (such as Duan Yongping and Warren Buffett's style of buying at low levels).

Right-side trading: suitable for the vast majority of retail investors, trend traders, and quantitative players (such as Livermore, Turtle Trading Rules, and Donchian Channel Breakout System).