The wisdom of rescuing trapped positions and cutting losses.

1. Decisive Stop-Loss When realizing the buying direction is wrong, especially when buying at a peak and the market trend reverses, quickly cutting losses is key to preserving capital. If anticipating the market will continue to decline, timely exit to retain capital strength for reallocation when the next opportunity arises. Stop-loss is a discipline traders must cultivate to avoid deep traps and losing chances to break even. Even in the face of short-term losses, one can quickly compensate by capturing other trading opportunities.

2. Adjusting Positions When the cryptocurrencies in hand perform poorly and continue to decline while other coins in the market show upward momentum, consider reallocating or switching coins. Sell underperforming coins and invest in those with high upward potential, using the profits from new coins to offset losses from old coins. This strategy requires traders to have a relatively accurate judgment of market trends and be able to make quick decisions.

3. Partial Stop-Loss In the face of deep traps and a persistently sluggish market, a partial selling strategy can be employed. Sell part of the coins, then gradually buy back at lower prices, reducing the cost of holding, and wait for a market rebound. This method is suitable for traders who believe the market will rebound in the future. Although there will be some losses, a lower average cost makes it easier to break free when the market recovers.

4. Increased Position Strategy (High Risk) During a market downturn, some investors choose to increase their positions at lower prices to average down their costs. However, this strategy carries high risks; if the market continues to decline, increasing positions may lead to greater losses. This approach is only suitable when there is strong confidence in a market rebound and ensuring sufficient funds to cope with further declines. 5. Patiently Waiting for Market Rebound In cases where the market is highly volatile but has not truly entered a bear market, choosing to patiently wait for a rebound may be wise. This requires assessing whether the fundamentals of the held coins are solid and whether the market still has upside potential. If the held coins have long-term growth potential, waiting patiently may be the best strategy to break free. If you are deeply trapped in your investments, feel free to communicate with me to discuss ways to break free.