Guide to Unwinding Positions: Practical Strategies

Recently, many people have been asking how to unwound their positions. As an experienced trader who has navigated countless bull and bear markets, I will provide you with an efficient, hardcore process for unwinding positions. If you follow it, you can generally keep losses to a minimum or even turn things around:

First, distinguish which type of 'being stuck' you belong to.

Stuck in a Range: For example, buying high and selling low within a consolidation range, with many opportunities due to market fluctuations. In this case, holding patiently or doing T+0 trades has a high chance of unwinding.

Stuck in a Trend: For example, buying at the top or failing to stop-loss when the market shifts from bull to bear. In this case, do not stubbornly hold on; the longer you wait, the deeper the losses.

Do you have any capital left?

If you have capital: Avoid going all in. You must gradually add to your position to lower your average cost, while doing T+0 trades to reduce losses.

If you have no capital: Don't expect a miracle to unwind your positions. It’s advisable to decisively cut losses or switch coins, focusing your efforts on more promising markets.

Understand the market position and avoid blindly adding to your position.

In the early stage of a rebound/strong support area: You can take small positions to buy low and perform rolling trades.

If there are no clear signs of reversal, do not add to your position or make any moves. Learn to wait with a cash position for opportunities.

Learn to manage rolling operations to reduce costs.

Example:

For instance, if you bought ETH at 3900 and it is now at 3600,

Sell a portion to realize some cash, then wait for a pullback to 3500 to buy back. By repeating this process several times, your cost will naturally decrease.

When the market rebounds one day, you won’t have to wait for the original price to unwind or even turn a loss into profit.

Make sure to review your trades and summarize your experiences.

Did you forget to set a stop loss? Was your position too heavy? Or were you impulsively buying high? Understand this so that you won’t get stuck next time.

Leave a comment with the coin you've been stuck in and your cost price, and I will help you break down a specific plan.