In the past few days, many fans may have been firmly trapped in the market. Recently, fans have come to A Gui to help them break free from their positions. Just last night, another well-known fan sought A Gui's help. This week, starting with an account of over 40,000, it has now dwindled to just 1,000, and some have even maxed out their credit cards or borrowed money to hold their positions.
A Gui has been reminding everyone that trading is not about luck; it's about following a checklist and doing things systematically. By turning rules into habits, profits will naturally come to you. Over the past few days, A Gui has also organized a few of his own methods to help avoid unnecessary holding of positions.
1. Observe before entering the market
No matter how good the market seems, if the direction is not sufficiently clear, wait for these three indicators: the three-day K-line stabilizes at the bottom of the range, the five-day line is rising, and trading volume increases by over 60%. At the same time, pay attention to news. If the direction is still unclear, you can test the waters with 5% of your position. If you don't know what to do, go have some tea or play games while waiting for a better entry point.
2. Sideways movement is not a dead end, but a good opportunity to average down
Take the floating profits out to average down. Remember this phrase: the principal follows, and the profit is the leaf; don't dig up the roots for fallen leaves.
3. In case of a sharp drop, first check for support; in case of a sharp rise, take profits first
When a waterfall decline occurs, check the previous support and the fear index; if the support holds, lie flat; when the rocket launches, sell 30% to take profits, and move the stop-loss for the remaining portion, letting profits work for us.
4. Always leave yourself with a 30% buffer
Don't let a single asset position exceed 20% of your total holdings, and a maximum of 70% total holdings; keep 30% in cash as a safety cushion. Being fully invested is for gamblers; leaving some capital is for players.
5. If the direction is uncertain, consider hedging appropriately and averaging down. First, lock in your positions and patiently wait for the market to correct. Observe market dynamics before averaging down; don't end up getting trapped even deeper.
That's all for this article. The text is limited for a short post. If there are still fans trapped, feel free to contact A Gui for free advice and assistance in breaking free from positions.