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Left or Right-side Trading: Which Approach Do You Prefer for Tesla?
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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, $Tesla Motors(TSLA)$ recently dropped to $217, with public sentiment claiming it was worthless and everyone waiting for it to go below $200. However, two days ago, Tesla rebounded to $270, and people started buying again. This situation is driven by the characteristics of left-side and right-side trading. Left-side traders possess the contrarian ability to buy the dip before a trend is established. However, many people, especially beginners, are unable to predict market changes in advance and may struggle with the psychological pressure of catching falling knives. Therefore, right-side traders prefer to wait for market stability and buy Tesla after it has bottomed out. Tesla is also a typical stock suited for trend trading. In the first three months of this year, Tesla has already experienced a 40% drop and correction. This decline was influenced by CTA selling, but these factors will soon turn into support for a strong rally in Tesla at the end of March. The CTA buying drove Tesla's strong rise, and it even surpassed the resistance at $285. Some say the next few trading days are likely to see a Gamma Squeeze effect, with $285 potentially not being the end of this rally. How do you view? Which approach do you take for trading Tesla or other stocks? What type of investor are you?
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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