Introducing methods to break free from losses, generally divided into two types.
1. Active strategies to break free from losses
1. Cut Losses
If it is discovered that buying was a serious mistake, especially if bought at the peak of a previous surge, one must have the determination to cut losses decisively and quickly to ensure the safety of funds. There are many opportunities in the cryptocurrency market; as long as funds do not suffer major losses, one can always earn back.
2. Swap Coins
If the current coin is in a losing position and still has room to drop, if one accurately judges that another coin has significant potential for future price increases and stronger trends, one can decisively swap coins to offset losses from the old coin with profits from the new one.
3. Short Selling
When it is determined that one is deeply stuck and cannot cut losses, and there is further downside potential in the market or a specific coin, short selling can be employed. One can sell the trapped coin first and buy it back at a lower price, effectively reducing costs.
2. Passive strategies to break free from losses
1. Averaging Down
If the purchase price is not high or one is optimistic about the future market, averaging down techniques can be employed. However, ordinary investors typically can only withstand one or two rounds of averaging down, so timing is crucial.
2. Wait and See
When fully invested and deeply trapped, unable to cut losses or add to positions, one can only passively wait. As long as it is one's own money, not borrowed, one can have the patience to wait.
One must not act emotionally and recklessly abandon all hope, blindly add to positions, or easily cut losses in a chaotic manner. Being trapped is not scary; sometimes not being trapped means not making money, and being trapped might actually lead to significant profits. Therefore, do not simply view being trapped as a disaster; if handled properly, it can completely transform into an opportunity.
