Zhao Youdao: What to Do When Stuck in a High Position? Newcomers Should Pay Attention to the Following Three Strategies for Unwinding

First, you need to correct your mindset. Always remember that after being stuck in a position, as long as you haven't exited, you cannot conclude that you are at a loss. Your mindset must be correct. Below, I will explain how to operate specifically from a technical perspective:

　　Method One: The Adjustment Method for Unwinding (Reducing Losses, Waiting for Profits): This method is suitable for long-term investors. For instance, if an investor has identified a major trend (like a bullish market) but is stuck in a minor trend (where the market has shown a downward wave), they can first cut losses and exit. Then, at a lower price point, they can re-enter, allowing them to capture a price difference and also gain profits from the major trend, thus reducing the risk of liquidation brought by the minor trend.

　　Method Two: The Quick Cut Method for Unwinding (Reducing Losses): This method is suitable for short-term investments. If an investor has completely misjudged the market, they should decisively close their positions to avoid further losses from continued one-sided price fluctuations. In a one-sided market, the longer a short-term investor holds onto their position, the greater the losses will be. Remember, when an alligator bites your leg, do not attempt to free yourself with your hands; otherwise, you will lose a hand and a foot. The correct method is to abandon your foot and escape.

　　Method Three: The Averaging Down Method for Unwinding. This method is suitable for lightly leveraged investors and also for large capital investors. As the price declines, they can increase their buy positions, using idle funds to lower their costs, waiting for the price to rebound. The advantage of this method is that no matter how deep the position is stuck, if operated correctly, it can be unwound with any rebound. Before using this method, it is essential to confirm whether the judgment of the major trend is correct; otherwise, it can lead to deeper entrapment. The key to this method lies in ensuring a bottom entry, as the timing of averaging down determines success or failure.