What to do if you're stuck? Let's take a look at the universal rules for getting unstuck:
1. Adopt a method of not selling and not losing, regardless of changes. Once you are stuck in a position, as long as you have not exited, you cannot consider yourself to have lost everything.
2. Use the method of adjusting positions. First, stop-loss and close out, then buy back at a lower price to reduce or offset the losses from the upper resistance.
3. Use a decisive stop-loss method. This means selling all held positions to avoid further losses if prices continue to fall. This strategy is mainly suitable for short-term investors with speculative purposes. In a declining bear market, the longer a short-term investor holds, the greater the losses incurred.
4. Adopt a method of averaging down. This means increasing purchases as prices fall further, thereby lowering the average cost in anticipation of a price rebound for profit. However, this approach must be predicated on confirming that the overall investment environment has not worsened and that there is no transition from a bull market to a bear market; otherwise, it is easy to fall into a dilemma of getting stuck deeper and deeper.
5. Investors who are slightly stuck can take advantage of a rebound market to exit or reduce positions at higher prices;
6. Investors who are heavily stuck can also consider reducing positions at higher prices, thus gaining an advantage psychologically and financially in the next wave of market movements.
7. If the purchase price is in a downward trend, once the downtrend is confirmed, you should immediately stop-loss and not hold onto any fantasies. Any hesitation could lead to deeper losses.