In the process of a large upward wave and its tail end, if the last low long position is occasionally entered a bit early and not closed in time, leading to being trapped, and there is no increase in margin, how to resolve this? This also applies to occasionally being trapped in short positions.
Operational idea: If the market quickly plunges and you have not set up any defense (such as setting stop-loss near the cost price, reducing positions at certain points, or stop-loss), when long positions are trapped, immediately open a short position of 1/3 of the long position. Gradually take profits at each support level, taking profit on 1/3 of the short position at each support point, while at the same time reducing the long position using half of the profits from the already taken short position when it rebounds to the resistance nearby on the same day. Since you have already taken profit on 1/3 of the short position, you can add to the short position when rebounding to the resistance. Subsequently, at each support level, add more low long positions to lower the average price of the long position while also taking profits on 1/3 of the short position, and so on. Generally, after operating on two small waves, the average price of trapped long positions will be pulled down, allowing for a no-loss exit upon rebound.
Key points of operation: It is best to open a short position within 1-2 hours of a drop on the same day, because in the first 24 hours, the market is the most volatile. Opening a short position immediately for hedging maximizes short profits, which also gives the most room to reduce long positions. For every amount of short profit taken, use that much to reduce the long position. For example, if the market drops 6400 points on the first day, it usually recovers 2500-3000 points, making this fluctuation very suitable for trading. By the second day, it will continue to explore new lows, and the rebound high will be lower than the previous day, increasing the floating loss on long positions.
After the third day, it generally hovers around a drop of ten thousand points, and will become passive.
This way, it does not deplete the total account's capital while achieving position safety. After the stop-loss signal appears, generally at the third small wave, set the short position's stop loss near the cost price, and when there is a strong rebound, focus on the long position.
My method does not deplete capital. Without needing to add margin, it achieves a safe position reduction and no-loss exit through a combination of hedging and trading.
Once understood, it becomes simple. For instance, if you now open a short position and take profits halfway at 91600, the profit is 2k. This position usually rebounds to 92725-93600. When it rebounds to this range, gradually reduce the long position by 1k, with the reduction costing the profit from the short position, which means your account has no loss. This way, your liquidation level becomes lower. At this point, if it rebounds by 1-2k points, you can add more short positions, for example, 1k, then at around 90850 and 90450, take profits on half of the short positions, for instance, if the profit is 2k. When it rebounds to around 91600 and 92500, use half of the short profit to further reduce the long position. At this point, your liquidation level is lower... and so on. When reaching the third small wave, the pullback is basically nearing its end, as the rebound indicators are increasing in level, and the rebounds near round numbers are very strong. When approaching the last new low, such as within 1k points below 90k, at points like 89850 and 89600, you need to add to your long position, trying to pull the average price of the long position up to 95000 or 94600. Then promptly set 94600 to break even and close 85%, and close 15% at 95000, exiting without loss. Then on the pullback to 93800-93300, enter low long positions, returning to the normal low long strategy, defending near the cost.
