90% of people hold on but don't know how to get out of the trap...90% of people hold on but don't know how to get out of the trap...
You stay up late to watch the market and accurately buy the bottom, but the market continues to plummet - your position is trapped
Should you cut your losses? Cover your position? Or pretend to be s? 90% of people make the wrong choice and end up with a liquidation...
Today I will teach you the secrets of getting out of the trap used by professional traders. After learning it, you can not only turn danger into safety, but even turn defeat into victory!
The first move: determine whether it is a "real trap" or a "fake trap"
Real trap: The trend is completely reversed (such as falling below the key support of the weekly line), and stop loss must be made immediately!
Fake trap: It is just a short-term wash (such as a quick withdrawal after a pin), and you can wait for a rebound
Skills: Use "multi-cycle resonance" to judge--1 hour line to see the direction, 15 minute line to find the entry, and 5 minute line to watch the reversal signal
The second move: dynamic position covering technique (most people cover incorrectly!)
Wrong approach: Covering positions when the price drops by 10%, the more you cover, the more you lose, and finally
heavy positions are liquidated!
Method:
1. Cover positions only at key support levels (such as previous lows, Fibonacci
38.2%)
2. The amount of each position covering does not exceed 50% of the original position
3. After covering positions, When the price is close, reduce the position by half when it rebounds to the cost price. Example: A currency fell from 1U to 0.7U, and it was covered at 0.65U support. When it rebounded to 0.8U, it reduced its position, not only untied, but also made a profit of 15%.
The third trick: hedging magic (90% of people don’t know) When you find that the trend may continue to fall, but you don’t want to stop loss:
1. Open an equal amount of reverse contract (if the long order is trapped, open a short order to hedge)
2. Set the short order stop profit = the long order cost price, so that no matter it goes up or down, it can protect the principal!
Advanced gameplay: use options to hedge, with lower cost and higher efficiency.
The core of untied is to protect the principal! If the position exceeds 50%, it is recommended to cut 50% first, and use the above method to operate the rest