Holding positions is an unavoidable 'roadblock' in trading. Every market shift can put your holdings in a passive position, but learning to scientifically resolve dilemmas allows you to take control amid volatility. Here are some practical ideas to break free from holding positions:
1. Break through based on the depth of the holding
- Lightly held (manageable loss): Don't wait for the 'perfect rebound'; decisively exit during minor rebounds, or first reduce half of the position to lock in some funds, avoiding small losses from developing into deep holds.
- Deeply held (loss exceeds expectations): Don't rush to 'average down'; first cut half of your position to relieve pressure, retaining half of your principal for flexibility—there are always opportunities in the market; the scarcity is hunters without bullets.
2. Use technical signals to find the right window to exit holding positions.
- Held at a high position: If the K-line breaks below a key trend line, don't cling to the fantasy of 'a pullback will rebound'; immediately cut losses and exit. When the trend reverses, hesitating for a second is a drain on your principal.
- Held at a middle position: Focus on the upper and lower edges of the recent fluctuation range; reduce positions at the upper edge during a rebound, and observe support at the lower edge during a pullback. Don't bet on one direction; gradually reduce losses with 'range trading.'
- Held at a low position: First check if the support at the daily level is stable; if consecutive small bullish candles appear at the bottom, you can cautiously add a small position, but after a 5%-8% rebound, decisively exit the added position, lower the cost, and wait for the next opportunity.
3. Adjust positions according to the trend; refuse to 'hold on till the end.'
- When the market is in a retracement of an upward trend: As long as it doesn’t break the medium-term moving average (like the 20-day moving average), patiently wait for a rebound; don’t let short-term fluctuations scare you off.
- Holding positions in a volatile market: Don't expect 'breaking even' by 'unwinding'; reduce positions at the upper boundary of the range and observe at the lower boundary. Using 'small losses for flexibility' is always better than being stuck in place.
- In a clear downtrend: Remember 'downtrends don’t signal a bottom'; even if the floating loss is already significant, you must be decisive when it’s time to stop loss—keep your principal to earn back losses next time; stubbornly holding only leads to a thinner account.
The real 'solution password' for holding positions in trading has never been to wait for the market to 'go easy'; it is to achieve these three points:
1. Think about 'what to do if wrong' before entering the market; the stop-loss point is more important than the target point;
2. After holding positions, don't calculate 'how much has been lost'; only calculate 'how much more will be lost if you continue to hold';
3. Always keep more than 30% of funds on hand; this is the confidence to deal with sudden market fluctuations.
Traders who can calmly handle holding positions have already escaped the 'obsession with breaking even' and instead protect their principal with rules—after all, living in the market offers the chance to turn trends into profits.
