What to do when trapped?
1. Don't rush to cut losses
When investments are trapped, don't rush to sell. As long as funds allow, you can temporarily observe market changes. Market conditions are cyclical and may present reversal opportunities. Remember, losses before selling are only on paper and haven't actually occurred.
2. Set stop-loss
Set a stop-loss bottom line for yourself. When losses reach this bottom line, decisively sell to stop the loss. This can prevent further losses from expanding. After stopping the loss, you can wait for the market to adjust to a better position, then re-enter the market to make up for previous losses and even achieve profits.
3. Quick in and out strategy
For short-term traders, the market changes rapidly. When you find that the market trend is not right, act quickly, and clear all positions in time to avoid further losses. Small losses are acceptable; the key is to preserve the principal.
4. Other suggestions
Diversified investment: Avoid putting all funds into the same variety or market. Diversified investment can reduce risks.
Market research: Conduct in-depth research on market trends and relevant data. Understanding changes in fundamentals and technical aspects helps in making wiser decisions.
Stay calm: Market fluctuations are normal. Don't let short-term fluctuations affect your emotions. Stay calm and rational, and execute according to your plan.
I am Xiao O, a professional analyst and teacher, a mentor and friend on your investment journey! As an analyst, the most basic job is to help everyone make money. I will help you resolve confusion and traps, speaking with strength. When you are lost and don't know what to do, pay attention to Xiao O, who will guide you in the right direction.
