What to do if you're trapped in a contract? It's not about holding on stubbornly, nor about cutting losses and immediately chasing the market, but rather about 'unwinding'.
First, you need to clarify: are you really trapped, or just scared away by market fluctuations?
Many times, the market dips briefly and then rebounds; this is a false trap, just wait it out. But if key support levels have been broken with increased volume, then the trend has changed. You mustn't hesitate; cutting losses is the way to protect yourself.
Also, don't add to your position recklessly. It's not about adding just because the price is falling; instead, wait for key support levels before taking action, and only add up to half of your original position at most. When the rebound approaches the original price, decisively reduce your position to lock in profits. Don't fantasize that the market will make a V-shaped recovery; if you miss an opportunity, it will truly be impossible to unwind.
Another way to unwind is through hedging: are you trapped in a long position? Just open an equal-sized short position for safety. If the price rebounds, your long position will unwind; if it falls, your short position will make money, at least your account won't keep losing more.
Ultimately, unwinding is not about who can endure more, but about who understands the rhythm, position size, and control better. True experts never gamble on direction; they only bet on whether they can survive the next round of market fluctuations.
Do you have any positions that are currently trapped?
Perhaps it's not that your skills are lacking, but that you just need a correct approach to handling it.
If you're still trapped and want to unwind, you can try this method, or follow Uncle Nan, who will teach you how to unwind step by step!
