In the cryptocurrency world, 'being trapped' is an experience that almost every investor cannot avoid. Looking at the floating losses in the account, should you cut losses painfully or bear it hard while waiting? In fact, liberating oneself from being trapped is not without rules. Regardless of whether it's a shallow or deep trap, and regardless of market fluctuations, mastering a set of 'liberation strategies' can help find a way to break the deadlock and regain investment initiative.

Step 1: Look at the 'position' and set the table.

Your position status determines the current response strategy.

Shallow trap (loss 5%-15%): Cut through the mess.

The core objective is to 'preserve the principal and minimize losses.' At this time, do not harbor any illusions; seize every rebound opportunity.

Exit by borrowing the rebound: When the market shows a technical rebound, decisively sell and exit to observe.

Reduce position at a high: If there are still expectations for the market, you can sell a part of your position to reduce risk and lock in some funds, allowing you to observe the remaining position more calmly and make flexible decisions.

Deeply trapped (loss over 20%): Take proactive measures.

At this moment, cutting losses is not very meaningful; the core objective is to 'reduce the holding cost and create conditions for liberating oneself from being trapped.' Passive waiting is a poor strategy; proactive management is key.

Replenish position at a low (pyramid style): Under the premise that the long-term value of the cryptocurrency has not fundamentally deteriorated, you can buy in batches and in small amounts when the price further declines (note that it's 'buying at a low,' not 'bottom-fishing') to lower the average holding cost.

Take the initiative: After reducing the average cost, the required rebound range to liberate oneself will significantly decrease, making it easier to free oneself from being trapped.

Step 2: Look at the 'trend' to determine the situation.

Position is 'internal strength,' while market trend is 'external force.' Acting in accordance with the trend can yield twice the result with half the effort.

Downward trend: When the moving average system shows a bearish arrangement, with high points continuously decreasing and low points consistently hitting new lows, a downward trend has formed.

At this time, you must immediately cut losses without hesitation! This is the most difficult but crucial step. In a downward trend, any 'bottom-fishing' thoughts may lead you deeper into trouble. Cutting losses is not admitting defeat, but preserving strength and leaving 'ammunition' for future good opportunities.

Balanced oscillation: When prices fluctuate back and forth within a clear range without a significant direction, there is no need to rush to cut losses.

The volatile market provides valuable adjustment time. When the price reaches the upper edge of the oscillation range and encounters resistance, decisively exit. At this time, liberating oneself or exiting with small losses is a wise choice.

Upward trend: When the moving average system shows a bullish arrangement, with low points continuously rising and high points consistently hitting new highs, there is no need to cut losses; hold firmly.

If you are trapped, it is very likely that you just bought at a pullback point in an upward trend. As long as the upward trend remains unchanged, holding is safe, and after a period, there is a chance to liberate oneself or even make a profit.

The test of liberating oneself from being trapped is not just technical, but also about mentality and discipline. Remember, there is no market that only rises and does not fall, nor a currency that only falls and does not rise. The key is whether you have a clear mindset and decisive action when difficulties arise.

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