1. Four Major Strategies for Unwinding Long Contracts

1. Decisive Stop Loss

This is suitable for when the trend is clearly downward and there are no signs of reversal. The approach is to stop loss promptly, directly cutting positions to stem losses. If it's judged that prices will fall further, one can also hedge by opening a short position. The core principle is not to harbor any delusions; if you need to exit, you should do so, and it's best to set stop-loss levels before opening a position.

2. Sell High, Buy Low

This is suitable for a volatile market, where prices oscillate back and forth within a certain range. The approach is to reduce positions when prices bounce back to resistance levels and buy back when they drop to support levels, relying on the price differences to lower costs. This operation requires you to accurately judge the range positions; otherwise, you may end up being trapped.

3. Lowering Cost

This is suitable when the market is nearing a temporary bottom, such as when there are signs of support stabilizing or indicator divergences. The approach is to add some positions at planned low points, thereby bringing down the overall holding cost. Once prices rebound near the cost line, you can choose to exit. However, if the judgment is wrong and the market continues to decline, this strategy may amplify losses, so it's crucial to pay special attention to risk control when using it.

4. Short Hedging

This is suitable when heavily invested and trapped, yet seeing a bearish outlook in the short term while still bullish in the long term. You can open a short position to hedge; for example, if you originally have 100 long positions, you can open 120 short positions to use the gains from the short to offset losses from the long. The key to this operation is to control the overall position well to avoid simultaneous losses on both sides.

2. Prevention-Oriented Trading Discipline

1. Once a position is opened, set stop-loss and take-profit levels, for instance, stop loss at a 5% or 10% loss; do not trade based on feelings.

2. Control your position size; do not exceed 20% of total funds in a single order to avoid being fully trapped at once.

3. Follow the trend; do not stubbornly hold long positions in an obvious downtrend, nor should you recklessly short in an upward trend.

3. Several Additional Suggestions

Do not trade frequently; opening and closing positions back and forth in a volatile market can easily lead to being shaken out, and fees will wear down your patience.

Stay attentive to market dynamics; sometimes, a policy or negative news can change the market structure that was originally in place.

Maintain a good mindset; being trapped is not terrifying, but indiscriminately adding positions and stubbornly holding on is actual loss. Following the plan is the key to long-term survival.