After being trapped, any action taken is a passive operation. While getting out of a loss is a fundamental skill that investors must master, they should focus more on improving their analysis skills and trading levels before getting trapped, in order to minimize the frequency of being trapped and always maintain control over their capital and mindset.
① Resolve the position based on size. If the trapped position is not very large, one can choose to reduce the position when the price strengthens, or directly take the opportunity to close the position during a rebound. If the trapped position is relatively large, one can appropriately reduce the position at a high price to free up excess capital to wait for the next rebound to seize the initiative.
② Resolve the position based on price trend. If the trapped position is currently in an upward trend, the investor only needs to wait for the price to rise to a certain level to automatically get out; if the current price is in a consolidation phase, and if the investor can exit with minimal loss, they should decisively close the position. If the current price is in a downward trend, regardless of the size of the position, one should decisively exit, otherwise, it will only lead to deeper losses.
③ Resolve the position based on the buying price. If the trapped position was bought at a relatively high price, do not hesitate, immediately cut losses and exit; if the trapped position was bought at a mid-level price, one can temporarily wait and assess how the price will move, finding opportunities to reduce positions at a high price or directly exit to resolve the loss; if the trapped position was entered at a relatively low price, there is no need to rush to cut losses because the price can easily reverse. Investors should exit when a price reversal occurs or directly increase their position to gain profits.