Hello everyone, today I would like to share with you how to choose the right side to open a position in a zero-sum game market.

Most of the time, our market is a zero-sum game, with not much money involved, so there is no such thing as value investing. It is only in the stock market that the term "value investing" has become increasingly popular in the past two years.

In the foreign exchange market, the spot market, and the futures market, it is all about zero-sum games. The money you make must be someone else's money, and the money you lose must have been transferred and become someone else's money.

Does this situation make you feel painful?

I also felt very painful when I first started trading. I wondered why my money had become someone else's money, and why I kept adding money but could never take money out. But that's how trading is; you must be cautious and careful with each trade, and only buy when the entry conditions are fully met.

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Yesterday's content, which we have shared with you, is about how to open a position. You can directly jump to it. Now let's talk about what right-side trading is.

I. Right-Side Trading

This is a 4-hour chart of the Euro from 2019 to 2020. The red line in the chart is an uptrend line that we have drawn.

So, what is right-side trading?

It was originally defined as follows: the left side of the line is left-side trading, called anticipatory trading, and the right side is called confirmatory trading.

What does this mean? It means that your line closes below, not that it goes below and then circles back up, which would be a shadow line, a reversal signal, right? For example, I trade based on support and resistance, and I draw a support line here. Multiple points are connected, and multiple prices touch this line, confirming the support line.But it must be done after breaking through this line and closing below the line, to make a trade, rather than near the line, I did it, which is very dangerous because you don't know if it will come down.

So the lines you draw and the support and resistance levels you find, including the indicators you use, Bollinger Bands, Fibonacci retracement, etc., all need to be chosen based on your own trading system on how to do right-side trading.

For example, if we use Bollinger Bands, there is a way I know to use them, such as the 2 plus 5 method. If I see it has crossed above, do I also have to wait until it has crossed above and closed before I make a trade? Instead of making a trade immediately after it crosses. If it closes back, and it comes back to a long-tailed inverted hammer, which is also what we often call a shooting star, that is a bearish signal, right?

So when we trade a variety, we must wait for it to close.

Of course, the cycle we trade is different, and the closing you wait for is also different. Some people like to trade on a daily line level, like long-term trades, for example, I am a long-term trend trader. Some people like to do intraday short trades, or medium-short trades within three to five days, all can, you refer to your cycle, you must wait for it to close.

There is only one variety that does not need to wait for closing, and that is gold. Of course, some people also say that crude oil does not need to wait for closing, that is, these fast varieties do not need to wait for closing, because it may be 700 points gone after it closes, right? For this kind of trade, you don't have to wait for the closing.

But for currency pairs, especially the more stable ones like the euro and Australian dollar, US dollar-Canadian dollar, etc., you should still wait for the closing.

This is what we need to experience after years of trading, we need to go through very meticulous review, long-term review, and the review process should have different feelings every time, until we can have a feeling for the market in our memory nerves, that is, we can have a feeling for the market the day before. Only then can we know whether each variety should wait for closing or not.

There is also how we should look at this line, whether this line is established or not. Many people say, teacher, your trend line is established, but how do you draw this trend line? How to draw it to be established?

First of all, students, the drawing of the trend line, a thousand people have a thousand lines, everyone has a different way of drawing, but what is the most basic way of drawing? The most basic way of drawing is that there must be at least two to three points on this line, this line will be confirmed by the market.Of course, there are some points that are particularly high or particularly low, which are influenced by certain policies or black swan events at the time, and are not within the scope of the trend line.

Naturally, this forms the underlying logic of my later trend formation, including the drawing of trend lines, and why it follows the trend line's approach. These courses will slowly explain to everyone. The knowledge point of today's content is why we should engage in right-side trading in a zero-sum game market.

Because the market will only recognize a trade with certainty. Why is it called market recognition?

Because once you enter, large funds like yours also enter, so it will go in the direction you think. Therefore, we should engage in right-side trading and not repeatedly engage in left-side trading with orders.

There is only one type of left-side trading that is recognized in the market, and that is value investing, but this only exists in the stock market. I think this company has value, I think this company has growth potential, I think the valuation will increase year by year, so I engage in left-side trading, buying more as the price gets lower.

However, that is not suitable for our current foreign exchange spot and futures market, so in our zero-sum game market, we must engage in right-side trading. That's all for today's content, and I welcome everyone to follow, like, and share!