The market is ever-changing, but as long as you master the response strategies, you can turn passivity into initiative and steadily extricate yourself. Here are some practical core strategies for handling trapped positions, recommended for collection:
1. Adjust flexibly based on the position situation.
Slightly trapped (minor floating loss):
Seize the rebound opportunity to quickly cut losses or appropriately reduce positions at high levels to lower overall risk exposure.
Deeply trapped (significant floating loss):
Avoid emotional trading, it is recommended to reduce positions in batches and adjust steadily, keeping some capital for key moments.
2. Combine technical analysis to scientifically resolve issues.
High-level trapped:
If technical analysis shows a weakening trend, decisively cut losses to prevent the loss from expanding.
Median trapped:
Pay attention to market rhythm, gradually reduce positions using rebounds, and strive for a calm exit.
Low-level trapped:
If approaching strong support and the trend stabilizes, consider averaging down to lower costs and patiently wait for a rebound to cut losses.
3. Operate in the trend, rationality first.
Upward trend:
Maintain patience and confidence, hold firmly, and wait for the market to provide repair opportunities.
Volatile market:
Gradually reduce positions at the high points of the range to lower risk exposure and control drawdown.
Downward trend:
Decisively cut losses to avoid the quagmire of 'increasing losses by averaging down', prioritize account survival.
4. The three core elements of trading:
Precise analysis: foresee trends in advance and match suitable operational strategies.
Strict risk control: use small positions to test the waters, set stop-losses, avoid greed and gambling.
Steady mindset: do not trade emotionally, respond rationally to fluctuations, and patiently wait for opportunities.
Excellent traders know how to find opportunities in crises.
Seize opportunities in chaos. True masters,
It's not about never being trapped, but always responding calmly and seeking victory steadily.
