#MarketPullback When you have entered the market and the price is actually falling (or rising if you are short), it means your position is currently at a floating loss. There are two important steps you must take objectively and quickly, not based on emotions:
1. EVALUATE THE SITUATION RATIONALLY
A. Has the SL Level Been Touched?
If not:
See if the price is still within your tolerance zone (for example, support has not been broken). Stay calm and wait for the system to play out.
If it has touched the SL:
Accept the loss as planned, do not average down or seek revenge.
B. Reanalyze Why the Entry Was Wrong
Was the entry too early?
Did you enter without confirming the signal?
Were you trading during high-risk news?
2. CHOOSE ONE OF THE STRATEGIES
Strategy A: Exit Quickly, Avoid Major Damage, Cut loss immediately if the market structure has clearly reversed from your plan.
Goal: preserve capital, not seek revenge.
Strategy B: Averaging Up/Down (Only If Trained)
Only for pro traders who understand market structure and have funds + risk control.
Add positions only if:
There is strong confirmation the direction will reverse.
The initial position size is small, and you are still far from liquidation.
Strategy C: Hedging
Create an opposite position (for example, long to cover the losing short position) so you can reduce floating loss.
Be Smart!