90% of people are stuck and don’t know how to get out...
You stay up late watching the market, precisely buying the dip, and the result is that the market continues to plummet—your position is trapped.
Is it time to cut losses? Average down? Or pretend it doesn’t matter? 90% of people make the wrong choice and end up blowing up their account...
Today I will teach you the secrets for getting out of a bad position that professional traders use. Once you learn this, not only can you turn danger into safety, but you can even turn losses into gains!
First move: Determine if it’s a "real trap" or a "false trap"
Real trap: The trend has completely reversed (e.g., breaking key weekly support), you must stop loss immediately!
False trap: It’s just a short-term shakeout (e.g., a spike followed by a quick recovery), you can wait for a rebound.
Technique: Use "multi-timeframe resonance" to judge—look for direction on the 1-hour chart, find entry on the 15-minute chart, and watch for reversal signals on the 5-minute chart.
Second move: Dynamic averaging down technique (most people average down incorrectly!)
Wrong approach: Averaging down after a 10% drop, resulting in more losses and ultimately blowing up your account!
Correct approach:
1. Only average down at key support levels (e.g., previous lows, Fibonacci 38.2%)
2. Each time, the amount averaged down should not exceed 50% of the original position size.
3. After averaging down, pull the average price closer, and when it rebounds near the cost price, reduce your position by half.
Case study: A certain coin dropped from $1 to $0.7, averaged down at $0.65 support, and when it rebounded to $0.8, reduced the position, not only getting out but also making a 15% profit.
Third move: Hedging magic (90% of people don’t know)
When you realize the trend might continue to decline but don’t want to stop loss: $XRP
1. Open an equal amount of a reverse contract (e.g., if long is trapped, then open a short to hedge)
2. Set the short take profit at the long entry price, so no matter if it rises or falls, you can break even!
Advanced play: Use options for hedging, which is cheaper and more efficient...
The core of getting out is to protect your capital! If your position has exceeded 50%, it’s advisable to first cut 50% of your losses, and operate the rest using the above methods.
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If you currently feel helpless, confused in trading, and want to learn more about cryptocurrency-related knowledge and first-hand cutting-edge information, click on my profile picture to follow me, and no longer be lost in trading! When you clearly see the market, your operations will have confidence. Steady profits are far more practical than fantasizing about getting rich.
