During the trading process, it is inevitable to encounter situations where one is trapped. So how can one get out of a trap? There are several methods to consider!
1. Position Holding Strategy
This strategy is based on the core principle of "not selling, not losing." When an investment position unfortunately gets trapped, the loss in accounting terms still has variables before selling. It is like a ship in a storm; as long as one does not choose to abandon the ship, there is still a possibility of safely reaching the harbor. However, investors using this strategy need to have strong financial backing to calmly cope with the potential continuous and severe market fluctuations, ensuring that during the long wait, they will not be forced to exit due to a broken capital chain, allowing them to successfully get out of the trap or even make a profit when the market reverses.
2. Step-by-Step Unwinding Strategy
"Stop loss and then add positions" is the action guideline of this strategy. Investors first need to decisively perform stop-loss operations on currently losing positions, promptly cutting off the source of losses to avoid further expansion of losses. Then, patiently wait for the price to rebound to the expected reasonable level, and at this time, re-enter the market accurately. Through this approach of retreating first and advancing later, it is like skillfully detouring on a winding road, effectively reducing losses during the unwinding process, and it is even possible to turn losses into profits, bringing the investment back onto a healthy track.
3. Decisive Stop-Loss Strategy
"Sell everything, quick stop-loss" is a distinctive feature of this strategy. For short-term speculators, this is a relatively wise choice under specific market conditions. When the market shows a continuous downward trend, time is like a ruthless killer; the longer one holds onto an asset, the potential losses keep increasing like a snowball. Therefore, by quickly and decisively selling the held assets, one can timely avoid greater risks caused by further price declines, thereby preserving the principal to create conditions for re-entering at an appropriate time.
