Three Practical Tips for Unwinding Contract Investments After Being Stuck
First: Based on the status of your positions, handle as follows.
1. Investors with slight losses can use rebound markets to unwind and exit, or reduce positions at highs.
2. Investors with significant losses at high levels can also reduce positions at highs, which allows them to take a proactive stance psychologically and financially in the next wave of the market.
Second: Based on the technical status of the purchased variety, handle as follows.
1. If the purchased variety is at a high when stuck, you must immediately cut losses.
2. If the purchased variety is at a medium level, you can temporarily wait based on the situation to seek to unwind and exit, or reduce positions at highs to minimize losses.
3. If the purchased variety is at a low level, there is no need to rush to cut losses. You should wait until the purchased variety stabilizes after a drop, and then dare to replenish at important support levels to average costs, rescuing the high-level stuck positions during the upcoming rebound market.
Third: Based on the trend status of the purchased variety, handle as follows.
1. If the purchased variety is in an upward trend, there is no need to cut losses; patiently hold for a while, and it is likely to unwind and even have a significant profit.
2. If the purchased variety is in a balanced fluctuation trend, there is also no need to immediately cut losses; patiently wait for the variety to enter a high point in the fluctuation cycle. Once unwound or when losses are minimal, decisively exit.
3. If the purchased variety is in a downward trend, once the downward trend is confirmed, you should immediately cut losses and never indulge in wishful thinking. Any hesitation or indecision can lead to deep losses that are hard to recover from.
In life, the accumulation of wealth in the initial stage requires courage and bravery, while the mid-stage requires strategic planning; in the later stage, one can enjoy passive income. In trading, the accumulation of profits in the initial stage requires extreme belief, while the mid-stage requires experimentation and adjustments; in the later stage, one can develop keen insight. Always remember, whether in traditional business investments or financial instrument trading, when luck elevates your wealth status a few steps, the most important thing is not to gamble on how much further you can go, but to preserve your achievements. Always secure your lifelong safety rope.
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