Don't Panic When Stuck! Here Comes a Practical Guide to Get Unstuck
Are you still worried about the positions you're stuck in? Don't worry, the following methods can help you cope with the situation.
Flexibly Get Unstuck Based on Position Size
If the stuck position is relatively light, you can reduce your position appropriately when the price rises; you can also close the position directly during a rebound to get unstuck. If the stuck position is relatively heavy, consider reducing your position at highs, leaving enough funds to take control in the next rebound.
Smartly Respond According to Price Trends
When the stuck position is in a rising market, patiently wait for the price to rise to a suitable level, and you can get unstuck automatically. If the market is in a consolidation phase and the loss upon exit is not significant, decisively closing the position is a wise move. In a falling market, regardless of the position size, you should decisively exit to avoid getting stuck deeper.
Precise Operations Based on Purchase Price
If you bought at a high price and got stuck, don't hesitate, exit immediately to stop losses. If you bought at a mid-range price and got stuck, wait and see, looking for opportunities to reduce your position at highs or get unstuck directly based on price trends. If you entered at a low price and got stuck, there's no need to rush to stop losses, as the price may reverse; you can get unstuck during the reversal or even increase your position for profit.
Many people often fall into a vicious cycle in investing: regardless of whether the market is rising or falling, one-sided or volatile, it's hard to grasp; buying leads to drops, drops lead to cutting losses, cutting losses leads to rises, rises lead to chasing, chasing leads to getting stuck, and getting stuck leads to cutting losses again, causing continuous shrinkage of funds. If you are also in such a vicious cycle, consider stopping to reflect, summarize your experiences, and start anew. Remember, choice is more important than effort; the right choice may be the key to turning point in investing.
While getting unstuck is an essential skill for investors, it is even more important to improve your analytical skills and trading level before getting stuck, reducing the number of times you get stuck, and always taking the initiative in terms of funds and mindset.
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