Today the market fluctuated back and forth, and I believe many people who chased highs or lows are stuck. How to get out of being stuck? Here is a simple sharing.
1. Active Unwinding
1. If you bought the wrong asset, especially if you chased after a strong rise, you need to be resolute and cut losses early to protect your wallet. There are many opportunities in the market, and as long as the money is still there, it will be easier to turn around.
2. If the asset in your hand is not performing well and continues to drop, then look for another asset that is about to rise, and quickly switch to it, using the new gains to cover the old losses.
3. If you are deeply stuck and believe it will drop further, then sell a portion and wait to buy back at a lower price, which will reduce your average cost.
2. Passive Unwinding
1. If you bought at a low position and believe the market will improve, consider adding some funds gradually, but don’t add too many times; timing is very important.
2. If you are fully invested and stuck, with no money to add or unwilling to cut losses, then just wait. As long as the money is yours and not borrowed, be patient; you never know when you might get unstuck.