How to Unwind from Being Trapped!
1. Proactive Unwinding
1. If you bought the wrong asset, especially if you bought at a high after a significant increase, be resolute and cut your losses early to protect your wallet; there are plenty of market opportunities, and money can be recovered easily.
2. If the asset you hold is not performing and continues to decline, look for other assets that are likely to rise and quickly switch over, using new gains to cover old losses.
3. If your losses are deep and you believe prices will continue to fall, sell a portion and wait to buy back at a lower price, thus lowering your cost basis.
2. Passive Unwinding
1. If you bought at a low position and believe the market will improve, invest a little more in several batches, but don’t overextend; timing is crucial.
2. If you are fully invested and cannot add more funds or are reluctant to cut losses, then just wait. As long as the money is yours and not borrowed, be patient, and you never know when you will be able to unwind.
Remember, being trapped is not the end of the world; avoid impulsive actions, maintain a steady mindset, and opportunities will always arise.