The problem of being trapped is not uncommon. Here are several practical strategies for unwinding the trap, hoping to provide some help to investors. But before that, I must emphasize again: when trading, be sure to set a stop loss point! Although setting a stop loss may cause us to suffer small losses due to misjudgment, once we are trapped in a trap, we may face greater risks, such as anti-loss, locking orders, or even cutting meat. Even if we are finally untrapped, the loss may far exceed the original stop loss. Locking positions should be regarded as a last resort, and it is not recommended to try it easily unless it is absolutely necessary. Remember, the first priority of investment is to control risks, only in this way can we ensure profits. The following are three strategies for unwinding the trap:
First, respond according to the position situation:
For investors who are slightly trapped, they can take advantage of the market rebound to unwind or reduce their positions at highs.
Investors who are trapped at high levels can consider reducing their positions at high levels in order to gain psychological and financial advantages in subsequent market conditions.
Second, formulate strategies based on the technical status of the currency purchased:
If the price is at a high level when buying, stop loss should be stopped immediately to avoid further expansion of losses.
If the purchase price is in the middle, you can wait and see according to the market situation, wait for the unwinding or reduce the position at highs to reduce losses.
If the purchase price is at a low level, there is no need to rush to stop loss. After the currency falls and stabilizes, you should make up for the low position at the key support level to reduce costs. In the subsequent rebound market, you can also unwind the high-level positions.
Finally, make a decision based on the trend status of the currency:
If the purchase price is in an upward trend, there is no need to stop loss. Patiently wait for a period of time, usually the unwinding will be achieved, and you may even make a large profit.
If the purchase price is in a balanced oscillation trend, there is no need to stop loss immediately. You should patiently wait for the currency to enter the high position of the oscillation cycle. Once the unwinding or loss is small, you should leave the market decisively.
If the purchase price is in a downward trend and the downward trend has been confirmed, stop loss immediately. Do not harbor illusions to avoid further losses.
