Unwinding strategies and trading wisdom: from passive response to active defense
1. The Art of Position Management
When positions are in trouble, professional traders will formulate differentiated solutions for unwinding according to the weight of positions. For light positions, it is recommended to grasp the price recovery momentum. When the market shows obvious rebound signals (such as MACD bottom divergence or volume and price rise), a gradient reduction strategy can be adopted. Each retracement does not exceed the previous low, and the position is reduced by 1/3. If a heavy position is locked, the "three-step unwinding method" needs to be implemented: first, reduce 20% of the position when it rebounds to the important moving average pressure level (such as the 20-day moving average); make up 10% when the second bottoming out does not break the previous low; and finally, complete the closing or reverse operation of the remaining position when the neckline is broken.
II. Trend Interpretation and Response Strategies
Mature traders should establish a three-dimensional trend response system:
1. Passive Position Holding in a Bullish Trend: When the weekly MACD maintains a golden cross and the price stabilizes at the middle band of the Bollinger Bands, hold the position and wait for the 0.618 Fibonacci retracement or the previous high pressure zone to exit
2. Proactive Breakthrough in a Volatile Market: When the KDJ indicator enters the oversold zone (below 20) and the trading volume shrinks to a low level, execute 'T+0' grid trading, reducing costs with every 2% price difference.
3. Decisive Stop Loss in a Bearish Trend: When three consecutive bearish candles break through a key support level on the daily chart, immediately activate the 'circuit breaker mechanism' and set a dynamic stop loss line based on the ATR indicator
III. Structured Handling of Cost Intervals
Establish a Cost Management System based on Fibonacci Retracement Theory:
1. Top Area (Retracement 0-23.6%): When a Evening Star + Top Divergence appears, immediately stop loss, controlling losses within 5% of total capital.
2. Continuation Area (Retracement 38.2-61.8%): Use options hedging strategy, buy out-of-the-money put options to protect long positions
3. Bottom Area (Retracement over 78.6%): Activate the pyramid additional investment method, adding no more than 20% of the original position funds with each new low.
Trading Psychology Development and System Optimization
Breaking the vicious cycle of 'chasing highs and cutting losses' requires establishing a three-dimensional trading log:
1. Emotional Dimension: Record the Greed-Fear Index for each trade (1-10 points)
2. Technical Dimension: Mark key candlestick patterns and the status of technical indicators.
3. Capital Dimension: Track position changes and risk exposure.
It is recommended to use the '3+2' Review Model: Analyze 3 successful trades and 2 failed operations weekly, focusing on the RSI state, volatility index, and sector correlation effects at the time of opening positions. Cultivate 'planned trading' thinking, draw a support-resistance map before the daily opening, and clarify the 'three no principles': do not chase after breaking the previous high, do not establish positions without significant volume, and do not close positions without clear signals.
Ultimate Risk Control Strategy
1. Establish a 'Safety Airbag' Mechanism: Single variety position not exceeding 20%, industry sector allocation not exceeding 35%.
2. Implement a 'Double Stop Loss' System: Price stop loss (5-8% from entry point) + time stop loss (holding period not exceeding 5 trading days).
3. Use of Options Insurance Strategy: Use 2% of the account funds monthly to buy out-of-the-money protective options
Remember: True trading experts are not experts at recovering losses, but readers of trends. By establishing a 'Five-Line Score' trading system (trend lines, moving averages, volume lines, indicator lines, psychological lines), convert passive recovery into active offense and defense. Conduct quarterly Sharpe ratio assessments and continuously optimize the risk-return ratio to achieve the ultimate goal of stable profitability in the capital market.
