What to do if you're trapped? Don't panic, here are four strategies to get out!
First strategy: Cut losses;
When you realize you've bought at a high point and the market is deteriorating sharply, you must have the determination to decisively cut losses, sacrificing the small for the big. As long as the market is still there, there will always be opportunities to recover.
Second strategy: Hedge;
If you are deeply trapped and cannot cut losses, and the market is still in a downward (upward) trend, you can open a position in the opposite direction. Wait for the price to drop (rise) to a lower (higher) level, then look for the right timing or news stimulus to sell the profitable side and patiently wait for recovery. (However, this method should only be used as a last resort)
Third strategy: Intraday T+0;
This is suitable for a volatile market. The specific approach is to trade short-term around the stocks you hold, selling high and buying low, to reduce costs through short-term profits. (This requires you to have sufficient monitoring time and good basic skills; otherwise, do not try easily)
Fourth strategy: Averaging down:
This applies to the late stages of a one-sided trend, when the index is oscillating or consolidating at a low level. (The scale of averaging down should be based on your capability)
The core of averaging down is: you must wait for the bottom to be confirmed before acting. Do not rush to recover your losses or blindly average down, otherwise, it will just become a strategy that deepens your losses!