Stuck in the market?
Don't panic! Here are 3 self-rescue techniques used by professional traders to help you turn the tide!
Most people just hold on when they are losing, and end up losing even more...
Today, I will teach you some strategies used by professional traders,
that can not only reduce losses but even allow you to profit!
First tip: First figure out if it’s a real trap or a false trap
Real trap: The trend has completely deteriorated (e.g., breaking important support levels),
Don't hesitate, get out quickly!
False trap: It's just a short-term fluctuation (e.g., a spike followed by a quick rebound),
You can hold on a bit longer.
Small tip: Use multi-timeframe analysis
Look at the trend on a larger timeframe (e.g., 4-hour chart),
Find entry and exit points on a smaller timeframe (e.g., 15-minute chart).
Second tip: Be cautious when averaging down, don’t do it recklessly!
Many people average down as soon as the price drops, resulting in a heavy position,
leading to liquidation... The correct approach is
To only average down at key positions (e.g., previous lows, trendline support)
Don’t average down more than half of the original position each time.
After averaging down and lowering the cost,
Sell part of it when it rebounds to the cost price.
For example: If a coin drops from $1 to $0.7,
average down at the $0.65 support, then sell half when it rebounds to $0.8,
not only can you break even but also make some pocket money.
Third tip: Hedging is great, but most people don’t know how to use it!
If you think the price will drop further but don’t want to cut losses,
Open a reverse position (e.g., if you're in a long position, open a short position to hedge).
Set the take profit for the short position at the cost price of the long position,
this way, no matter if it goes up or down, you can protect your capital.
Advanced play: Use options for hedging, it's more flexible and cheaper...
Final reminder: Protecting your capital is the most important!
If your position is too heavy (over 50%), it’s advised to cut half first,
then use these techniques for the remaining position.
I am Su Shen, skilled in medium and short-term contracts, and medium to long-term spot allocation, sharing investment tips daily. For detailed strategy training, contact @苏神bit !
