Today, let's talk about the most troublesome issue of stuck positions. Actually, this situation is quite common, but as long as the response is appropriate, it can completely shift from passive to active. Next, I'll share a few core strategies for handling stuck positions to help you stop losses in time and seize profit opportunities.
First, let’s discuss how to respond flexibly based on the depth of the position.
If the stuck position is not deep and the unrealized loss is relatively small, then take advantage of a rebound to quickly get out, or reduce some positions at a high point to lower the risk.
But if the position is deep and the unrealized loss is significant, then caution is required—it's advisable to reduce positions in batches to preserve strength; never act impulsively, or the losses may snowball.
Next, let’s talk about how to accurately break the situation using technical analysis.
If you are stuck at a high position, once you notice the trend weakening, you must decisively stop losses and not let the losses continue to spread.
If you are stuck in the middle position, then first observe the market trends and wait for a rebound opportunity to exit, or you can gradually reduce your positions.
If you are stuck at a low position, then be patient, wait for stabilization signals to appear, add some positions at key support levels to lower costs, and then look for opportunities to get out.
Another very important point: you must follow the trend and operate rationally.
In an upward trend, just hold on and wait for profits.
If it’s a sideways market, gradually exit near the upper range to minimize losses.
However, if it’s a downward trend, you must decisively stop losses and not let yourself get stuck deeper.
Ultimately, to do well in trading, there are three key points:
First is accurate analysis; you must identify the market direction and develop a reliable strategy.
Second is strict risk control; operate with light positions, set proper stop losses, and absolutely cannot stubbornly hold positions.
Third is mindset management; remain calm in the face of fluctuations, and never trade emotionally.
Truly skilled traders are those who can find opportunities in crises and seize the initiative amidst changes. Rational decision-making is the way to walk steadily and far.
