Recent market fluctuations have been intense, and many people are likely facing the challenge of being trapped in their positions. The market changes rapidly, but a rational strategy is always the best way to respond. The following three steps will help you steadily free yourself from being trapped:
1. Calmly assess and control risks
First, stay calm and avoid blindly cutting losses or increasing positions. Ask yourself two questions:
1. Is your position too heavy? If your holdings exceed your psychological tolerance, it is advisable to reduce some positions first to relieve pressure;
2. Has the trend broken? If the key support level is lost, you need to adjust your strategy to avoid stubbornly holding onto a one-sided market.
2. Three-step method to get out of being trapped
1. Gradual averaging down:
Divide your spare funds into 3-5 parts, and add to your position every time there is a decline of 5%-8%, effectively averaging down your cost. Avoid going all in at once!
2. Swing trading:
In a volatile market, enter lightly at support levels, and take profits in batches after a rebound of more than 5%, gradually recovering funds through multiple small victories.
3. Change your mindset:
If it falls below long-term key support, consider reducing positions on rebounds, keeping some capital in reserve, and wait for clearer right-side signals before re-entering the market.
3. Long-term perspective and mindset adjustment
1. Market fluctuations are normal; being trapped does not equal failure, and short-term volatility should be viewed rationally;
2. After freeing yourself from being trapped, be sure to summarize lessons learned: always set a stop-loss line to avoid over-leveraging and chasing highs;
3. If you are confused about short-term trends, you can temporarily step back and observe, patiently waiting for the trend to clarify.
The core of getting out of being trapped is to control risks rather than pursue excessive profits. Stay calm, follow the rules, and adjust flexibly to navigate through bull and bear markets. There are always opportunities in the market; surviving is the key to being a winner! If you are also facing the dilemma of being trapped, you can consult Sister Yan.