What to do when you are stuck during a trade?

Getting unstuck, as a term in the cryptocurrency world, refers to the price of a coin rebounding to near the buying price, allowing one to sell the coin and recover funds. Learning how to trap is to truly learn hunting; learning how to get unstuck is to truly understand trading.

Below are some methods for getting unstuck, generally divided into two categories.

1. Proactive Unsticking Strategies

1. Cutting Losses

If you realize that buying was a serious mistake, especially if purchased at the peak of a previous surge, you need the resolve to cut losses decisively and promptly to ensure the safety of your funds. There are many opportunities in the crypto market; as long as your funds do not suffer significant losses, you can always make it back.

2. Switching Coins

If the coin you hold is stuck and in a weak position, with further downward potential, if you accurately assess that another coin has greater potential for an upward trend and stronger performance, you can decisively switch to the new coin to offset losses from the old coin with new profits.

3. Short Selling

When it is determined that you are deeply stuck and unable to cut losses, and there is further potential for a downturn in the overall market or a specific coin, you can adopt a short selling strategy, selling the stuck coin first and buying it back at a lower price to effectively reduce your cost.

2. Passive Unsticking Strategies

1. Averaging Down

If the buying price is not high or you have a strong outlook for the future market, you can use the averaging down technique. However, ordinary investors can usually only withstand one or two rounds of averaging down, so the timing is crucial.

2. Waiting It Out

When you are fully invested and deeply stuck, unable to cut losses or add to your position, the only option is to passively wait. As long as it is your own money and not borrowed or loaned, you should have the patience to wait. It is crucial not to act emotionally, recklessly throwing in the towel, blindly adding to your position, or easily cutting losses in a chaotic manner.