In the investment process, encountering situations of being trapped is a common dilemma, especially during periods of significant market volatility. Different coping strategies can be adopted based on various trapped scenarios:
1. High Position Trapped
If you are trapped at a high position, you can choose from two strategies:
Wait for a rebound: Observe whether the market will rebound and exit at the appropriate time when prices rise to reduce losses.
Partial reduction: At a high position, consider selling a portion of your assets to lower your position and mitigate losses. If a sudden market change occurs, decisively execute a stop-loss to avoid further losses. Additionally, consider using reverse operations (such as short selling) to hedge against losses.
2. Medium Position Trapped
If you are trapped at a medium price level, avoid hastily cutting losses. At this time, calmly observe market trends and patiently wait for the right opportunity to reduce or increase positions. Combine technical analysis to find potential support levels or rebound points, and adjust positions in a timely manner, aiming to recover losses during a market rebound.
3. Low Position Trapped
If you are trapped at a low position, maintain sufficient patience. Look for opportunities to break free during market corrections or appropriately reduce positions when prices are low, avoiding continuous accumulation at low levels. At this point, patiently wait for market recovery or reduce risks through appropriate position adjustments.
Summary
Whether trapped at high, medium, or low positions, the key is to flexibly adjust strategies based on the actual market trends. When the market trend changes, timely stop losses should be executed, and reverse operations should be performed as needed to reduce losses or recover from losses.