It’s late—are you still watching the market?

Bitcoin is bouncing back slightly tonight. What should everyone who’s been thinking, “boldly chase shorts,” do?

Who hasn’t had the experience of getting trapped in a position? Here are a few position-unwinding methods I’ve accumulated over many years of experience—hope they help you:

1. Lock in the position (also called hedging)

What feels good: The moment you do it, your losses get “frozen.” You don’t have to cut immediately, and you give yourself room to maneuver.

What can go wrong: This is a “money-sucking beast.” You have to post margin on both sides, and you have to pay double overnight fees. The worst part is when you unlock—you end up getting slapped on both sides, and the more you unwind, the less you have left.

2. Cut positions in batches (reduce exposure)

What feels good: The pressure is cut in half, and your mindset stabilizes right away. The remaining chips still have a chance to break even and recover.

What can go wrong: “Admitting you’re wrong” is too hard. Most retail traders would rather watch a loss of 1000 than actually lose 300 and exit in a straightforward way—so in the end, they often lose everything.

3. Add positions against the trend (average down)

What feels good: As long as the market makes even a slight move back upward, you can not only unwind but also end up profiting. This is the most “head-on” kind of play.

What can go wrong: This is the first executioner that leads to liquidation. Gold is best at “boiling frogs in warm water.” You think the bottom is in—but actually, there’s a basement below the floor.

4. Hold firm (swap time for space)

What feels good: As long as you don’t get liquidated, one day it will come back. It’s suitable for people who don’t want to think too much.

What can go wrong: There’s zero margin for error. Once you run into a one-way freak trend like last week, it can drive you to liquidation in just a few days—straight to zero.

There are many ways to unwind positions. Unwinding isn’t really that hard—it just depends on whether you can use the right method at the right time.

In this market, living longer matters more than making quick profits.

Don’t let the obsession from one bad trade destroy all your capital.