In fact, it is very common in the investment process. It often happens when some orders are placed without stop loss. The time is when the market is approaching. At this time, we must not rush to deal with it calmly. Because in the investor market, it is not about who earns more but who goes further. You must be steady and decisive. You must control your position and set a stop loss. After all, if a wave of reverse market comes, if you do not stop loss in time, there may be a surge, and the previous efforts will be wasted.

1. Decisively exit the market according to the standard stop loss

Perhaps this method is not accepted by a large number of investors, but it is indeed the fastest and most effective way to control capital risks. The other methods have too many uncontrollable factors involved, which increases the possibility of expanding losses. So if you want to achieve a quick release, the best way is to recommend the first stop loss and exit, and then make the next order to solve the previous loss through profit.

2. Locking position operation and exit

What is lock position? It means the same product, same position, half of the position is bought, and half of the position is sold. When the market reverses, one side is closed immediately, and the other side is covered. When the market rebounds, all positions are closed and exited to make a profit and get out of the trap; for example, buy 1 Bitcoin at 10,000, but the market is going down recently. When it is expected to go down again at 9,990, buy and short 1 Bitcoin here, so that our loss space is locked at 10 US dollars. When the market falls back to around 9,980, it is expected that the market will rebound. At this time, close the short order in hand and cover the long order at this position. When the market rebounds above 9,990, all the orders in our hands have been untied and can be exited, waiting for the next opportunity. One thing to remember is that the lock position operation requires margin, so the limitation is that the amount of funds in hand is too small. And the reversal point of the market is not easy to grasp, so this operation requires strong judgment. Otherwise, the trap order cannot be solved.

3. Unwinding through hedging

What is hedging? Hedging means creating different investment portfolios. For example, when we are losing money on multiple orders, if you judge that the market will continue to fall, we can make profits by short selling to make up for the losses of multiple orders. When we are out of the market, the orders are basically solved. In simple terms, one product loses money and another product makes money, so as to achieve the profit purpose. However, this method also has a disadvantage, that is, it requires a lot of funds. If you have very little funds, it is recommended not to choose this method. If you are not careful, not only will you fail to achieve the purpose of solving the problem, but you will be trapped deeper and deeper. This is often called the lock of heaven and earth.

4. Waiting for the market to reverse by holding orders

Holding orders means holding on to losing orders until they make a profit. This is the most common way of investment that I have seen so far. Usually, as long as there is a set of orders, people are reluctant to stop losses at the beginning, hoping that the market will reverse, but they have already stepped into the fire pit step by step. When the losses continue to expand, the losses are too large and there is not much left after cutting them, so they decisively choose to continue holding until they reverse and make a profit. It is not that this method is not recommended, but it requires very strict control of funds and positions. If you are not careful, the orders in your hands will be directly liquidated and you will leave the market. Unless you have a lot of funds, don't use this method lightly without absolute certainty.