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What to do if you're trapped? Don't panic, here are four tips to get out!
Tip 1: Cut Losses;
When you find yourself buying at a high point and the market trend suddenly worsens, you must summon the courage of a warrior and decisively cut losses, abandoning the ship to save the captain. As long as the market is still there, there’s always a chance to turn things around.
Tip 2: Hedging;
If you are deeply trapped, unable to cut losses, and the market is still in a down(up) trend, you can open a position in the opposite direction. When the price drops(rises) to a lower(higher) level, wait for the right moment or news triggers to sell the profitable side and wait patiently for the trap to loosen. (However, this method is only used as a last resort)
Tip 3: T+0 Intraday Trading;
Suitable for volatile markets, this approach involves short-term trading around your holdings, buying low and selling high, to reduce costs through quick profits. (This method requires you to have enough time to monitor the market and solid trading skills; otherwise, do not attempt it lightly)
Tip 4: Add to Your Position;
Applicable in the late stage of a trend, when the index is oscillating or consolidating at low levels. (The scale of adding should be within your capacity) The key is: only operate after confirming the bottom, and never rush to recover losses blindly. Adding blindly will only turn into a topping tactic, making the trap deeper!