If you're unable to fully exit a position, it's crucial to take steps to limit potential losses. For instance, we have a friend who entered a Bitcoin short at a less-than-ideal level. As the price climbed to around $109,000—getting dangerously close to his liquidation point—the pressure became overwhelming. Just yesterday, while holding a short position, he seriously considered closing the trade to cut his losses, fearing that if the price continued to rise, the financial damage could be substantial.
However, after receiving advice to hold on a little longer, he decided not to panic. Just thirty minutes later, Bitcoin pulled back to $106,000. This gave him the opportunity to reduce his short position by 75%, significantly limiting his losses. While he couldn't exit completely, this strategic adjustment helped him manage risk more effectively—showing that sometimes, reducing exposure can be a practical alternative when a full exit isn't immediately possible.
