Stuck in a contract? Three tricks to turn the tables! 90% of people hold on stubbornly without knowing how to get out...
You've stayed up late watching the market, accurately picking the bottom, but the market continues to plummet—your position is trapped.
Is it time to cut losses? Average down? Or act tough? 90% of people choose incorrectly and end up blown out...
Today, I will teach you the secrets of getting out that professional traders use. Once you learn them, you will not only be able to turn dangers into opportunities but even turn losses into gains!
First trick: Determine if it’s a "real trap" or a "false trap"
Real trap: The trend has completely reversed (e.g., breaking key support on the weekly chart), you must stop-loss immediately!
False trap: It's just a short-term shakeout (e.g., a spike down followed by a quick recovery), you can wait for a rebound.
Tip: Use "multi-timeframe resonance" for judgment—look at the 1-hour chart for direction, find entry on the 15-minute chart, and monitor reversal signals on the 5-minute chart.
Second trick: Dynamic averaging down technique (most people average down incorrectly!)
Incorrect method: Averaging down after a 10% drop, resulting in greater losses and ultimately a blown account!
Correct method:
1. Only average down at key support levels (e.g., previous lows, Fibonacci 38.2%)
2. Each averaging down amount should not exceed 50% of the original position.
3. After averaging down, bring the average price closer, and when it rebounds near the cost price, reduce the position by half.
Example: A certain coin drops from $1 to $0.7, averages down at $0.65 support, and when it rebounds to $0.8, reduces the position, not only getting out but also making a 15% profit.
Third trick: Hedging magic (90% of people don’t know)
When you find that the trend may continue to drop, but you don’t want to stop-loss:
1. Open an equal amount of a reverse contract (e.g., if long is trapped, open a short to hedge).
2. Set the take-profit for the short equal to the cost price of the long, so you can break even regardless of whether it goes up or down!
Advanced play: Use options to hedge, with lower cost and higher efficiency...
The core of getting out is to preserve your principal! If your position exceeds 50%, it is recommended to first cut losses by 50%, and use the above methods for the remaining.
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