Don't panic about being trapped! Lao Tian's four strategies to help you deal with it:
First Strategy: Decisively cut losses
Applicable Scenario: After buying at a high position, the market trend suddenly turns downward.
Key Operation Points: You should decisively stop losses and exit to avoid further losses. Preserve your strength and patiently wait for a market turnaround, leaving room for subsequent operations.
Second Strategy: Flexibly use hedging
Applicable Scenario: Deeply trapped and difficult to cut losses, and the market trend (downward or upward) is clear.
Key Operation Points: You can first establish a reverse position. Wait for the market to move to a more favorable position (such as a lower point or a higher point), or leverage key events/news to catalyze, closing profitable hedge positions to reduce the cost of the original position, and patiently wait for the opportunity to get out. (Note: This is a high-risk strategy and should be used with caution).
Third Strategy: Skillfully conduct intraday T+0 trading
Applicable Scenario: The market is in a volatile pattern.
Key Operation Points: Conduct intraday high selling and low buying operations around the existing position, using short-term price differences to profit and dilute holding costs.
Core Requirements: A significant amount of monitoring time is required, along with solid short-term trading skills and market intuition. Non-experienced investors should use with caution.
Fourth Strategy: Prudently average down
Applicable Scenario: Anticipating that a one-sided trend is coming to an end, with the index fluctuating or consolidating in relatively low areas.
Key Operation Points:
1. Act according to your ability: The scale of averaging down must be strictly controlled within an acceptable risk range.
2. Key Premise: Must have a high degree of confidence in the stage bottom before proceeding.
3. Core Warning: Avoid blindly averaging down out of eagerness to recover losses, otherwise, it is easy to fall into the dilemma of 'the more you average down, the more trapped you become'.
