At the end of a major upward wave, entering a low long position at the last moment occasionally feels a bit early. If you get stuck, how to resolve it, including occasionally getting stuck in a short position is also applicable. Let me focus on this issue:
Operational idea: If the market quickly plummets and you haven't made any defensive moves (such as setting a stop-loss near the cost price, reducing positions at certain levels, or stop-loss), when holding a long position gets stuck, the first step is to open a short position of 1/3 of the long position. Take profits in batches at each support point as it goes down. When reaching each support point, take profit on 1/3 of the short position, and at the same time use half of the profit from the closed short position to reduce the long position when the price rebounds to the resistance of the day. Since you have already taken profit on 1/3 of the short position, right? Therefore, when the price rebounds to the resistance, you can add to the short position. Then, buy back some low long positions at each support point to lower the average cost of the long position, while also taking profit on 1/3 of the short position, and so on. Generally, after operating two small waves, the average cost of the stuck long position will be pulled down, and it can be closed without loss when rebounding nearby.
Core operation: It is best to open a short position within 1-2 hours of a drop on the same day, because in the first 24 hours, the market will drop the most violently. Opening a short position to hedge at the first moment gives the largest profit from the short position, which in turn provides the most space to reduce the long position. The amount of short position profit taken should be used to reduce the long position. For example, if the market drops 6400 points on the first day, it generally recovers 2500-3000 points, which is very suitable for T trading. By the second day, it will continue to seek new lows, and the rebound highs will be lower than the previous day, resulting in increased floating losses on long positions.
After the third day, it generally hovers around a drop of ten thousand points, becoming passive.
This way, it won't deplete the total account's bullets while ensuring the safety of positions. After a stop-loss signal appears, generally during the third small wave, set the stop-loss for the short position near the cost price, and when there is a strong rebound, focus on going long.
My method does not deplete bullets, and without needing to add margin, it achieves reducing the stuck position to a safe range and closing without losses through a combination of hedging and T trading.
