The first step is to handle the following based on the position in hand:
1Investors who are slightly trapped can use the rebound market to unwind and exit, or reduce their positions when they encounter high prices;
2Investors who hold onto high positions can also take the initiative in psychological and financial aspects in the next wave of the market by reducing their positions at high points.
The second is to handle the following based on the technical status of the purchased currency:
1If the purchased currency is at a high level when trapped, it must immediately stop losing.
2If the currency being purchased is in the middle position, one can temporarily wait and see based on the situation at the time, in order to unwind and leave the market or reduce losses by reducing positions at high points.
3If the purchased currency is at a low level, there is no need to rush to stop losses. After the purchased currency has stabilized and fallen, one should dare to replenish positions at important support levels, dilute costs, and rescue the positions trapped at high levels in the upcoming rebound market.
The third approach is to handle the following based on the trend status of the purchased currency:
1If the currency being purchased is on an upward trend, there is no need to stop loss. If you hold it patiently for a period of time, it will inevitably be released, and there may even be a possibility of significant profits.
2If the currency being purchased is in a balanced and volatile trend, there is no need to immediately stop losing. Be patient and wait for the currency to enter a high level of the volatility cycle. Once the situation is resolved or the loss is minimal, you should decisively exit the market.
3If the currency being purchased is in a downward trend, once it is confirmed that the downward trend has formed, immediate stop loss should be implemented, and one should never have illusions about gains and losses. Any hesitation or hesitation can lead to a deep trap that is difficult to extricate oneself from.