🚨 90% of people who are trapped will only hold on stubbornly. Actually, this is how to get out of the trap...
You stay up late watching the market, precisely timing the bottom, but the market continues to plummet, leaving you firmly trapped.
Cut loss? Averaging down? Playing dead?
90% of people will make the wrong choice and end up blowing up their accounts.
But professional traders get out like this👇
🎯 Trick 1: Determine whether you are in a "real trap" or a "false trap"
If you operate without distinguishing between true and false, you will get trapped deeper!
✅ Real trap: The trend has completely reversed (e.g., breaking key support on the weekly chart) → Must cut loss
⚠️ False trap: Short-term shakeout (e.g., a spike followed by a quick recovery) → Wait for a rebound before taking action
Practical tip: Use multi-timeframe resonance to judge the trend
🕐 1-hour chart for direction
⏱ 15-minute chart for entry
⏳ 5-minute chart for reversal signals
💰 Trick 2: Dynamic averaging down method (most people average down incorrectly!)
Averaging down is not about emotions, and it’s definitely not just "buy more when it drops"!
❌ Incorrect approach: Averaging down after a 10% drop, resulting in increasing losses and ultimately blowing up the account.
✅ Correct approach:
Only average down at key support levels (e.g., previous lows, Fibonacci 38.2% position)
Each averaging down should not exceed 50% of the original position
After averaging down, if it rebounds to near the cost price, first reduce half of the position to lower risk
Example:
A certain coin dropped from 1U to 0.7U, averaging down at 0.65U (support level), then reducing half of the position when it rebounds to 0.8U, not only getting out of the trap but also making a 15% profit!
🧙♂️ Trick 3: Hedging technique (90% of people don’t know)
When you suspect the market will continue to drop, but you don’t want to cut losses, you can do this:
→ Open an equivalent reverse contract to hedge!
For example, if you are trapped in a long position, open a short position:
Set the take profit of the short position = the cost price of the long position
Regardless of whether it rises or falls, you can lock in the losses and stabilize the rhythm
Advanced play:
Use options for hedging, which is cheaper and more efficient (suitable for experienced traders)
🧠 The core of getting out of the trap is just one thing: Preserve the principal
If your position has exceeded 50%, don’t fantasize about getting out entirely.
It’s advisable to first cut half of the position, then handle the remaining according to these 3 steps:
✅ Identify true and false traps
✅ Dynamic averaging down
✅ Hedging to protect the position
This is how professional traders operate.
Follow and save this article; it could save your life during market fluctuations.
💬 Want to see specific coin practical case studies for getting out of the trap? Leave a comment to let me know
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