What to do if you are stuck in a transaction? Six strategies to get out of the trap can help you deal with it easily
During the trading process, it is inevitable that you will be stuck due to misjudgment. But don't be too anxious. Here are six methods commonly used by traders to get out of the trap to help you deal with it calmly:
1. Spread method
If you are stuck in a long position and judge that the market outlook is downward, you can sell part of the position at the rebound high point during the decline and buy it back after it falls. By selling high and buying low, you can continuously reduce costs until the total loss is made up and the trap is solved.
2. Half-position rolling method
Similar to the spread method, but half-position operation is used. The advantage of this method is that even if the judgment is wrong, there is still half-position as cost, which is more flexible to handle. Through the half-position spread operation, if the judgment is correct, the loss can be made up, and if it is wrong, there is still half-position as a guarantee.
3. Lowering the average price method
This method is suitable for traders with a lot of cash and enough courage. Taking a long position as an example, after being stuck, double the purchase every time it falls to lower the average price. Wait for a rebound or rise to get out of the trap. This method can quickly lower the average price and make a profit, but the risk factor is high and needs to be operated with caution.
4. Same position replenishment method
Similar to doubling the position, but the position of the replenishment is the same as the position held. The advantage of this method is that it can lower the average price significantly without using a large position, and the risk factor is small. However, the average price is relatively small.
5. Half position increase method
When the direction is correct but the market is volatile, half position increase can be made at a high or low position. This can not only lower the average price but also ensure that the position is not large, and the final profit will be greater than the original position.
6. Cut position and sell at a loss
If you find that you have bought at a high position, especially after the previous surge or after chasing the rise and falling, you should decisively cut position and sell at a loss to avoid greater losses. As long as the funds are not greatly damaged, there will always be countless opportunities to make it back.
Please note that the above methods are for reference only, and the specific operations need to be considered in combination with personal actual situation and market conditions. It is very important to stay calm and rational in trading, and avoid emotional trading that leads to greater losses.
