Let's talk briefly about how to break free from a losing position? This is a question that many people are curious about,
Having gone through two bull markets, I would like to share my experience:
There are three situations: (purely personal sharing, for reference only)
1. Stuck at a high position
There are two paths to take: either wait for the market to rebound and seize the opportunity to withdraw quickly; or sell a bit at a high price to reduce your position.
Once the market direction changes, you must stop loss immediately on the stuck positions, do not hesitate, directly make a reverse operation, buy the opposite position, and you might recover some losses.
2. Stuck at a mid-price position
First, don’t rush, don’t be hasty to cut losses!
The key is to observe how the market moves in the future. Once an opportunity arises, you can slightly reduce the stuck positions.
Then, based on the market trend and combined with technical analysis, find a good time to increase your position a bit and slowly recover the losses.
3. Stuck at a low position
One word: wait!
Wait for the market to pull back, find an opportunity to break free from the position, or reduce your position when the price is low.
Once the market changes, you must quickly stop loss on the stuck positions and don’t linger anymore.
Then operate in reverse, buy the opposite, and try to recover the previous losses as much as possible.
