2、 If trapped, the purchased item must be immediately stopped at a high level.
If the purchased item is in the middle position, you can temporarily observe and wait based on the current situation, in order to unwind and exit the market or reduce your position at high prices to reduce losses; If the purchased price is at a low level, there is no need to rush to stop losses. After the purchased price has stabilized, one should dare to replenish the position at an important support level, spread the cost, and rescue the position trapped at a high level in the upcoming rebound market.
3、 Adopt the method of spreading downwards.
As the decline increases, we will increase our purchases and lower our purchasing costs, waiting for a rebound and profit. However, adopting this approach must be based on confirming that the overall investment environment has not deteriorated and that the market has not transitioned from a bullish market to a bearish market. Otherwise, it is highly likely to fall into the trap of getting more and more trapped.
4、 Adopting the 'no selling, no losing' approach of adapting to changes with the same principle.
If the purchased item 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 profit; If the purchased item is in a balanced oscillation trend, there is no need to immediately stop loss. Wait patiently for it to enter the high level of the oscillation cycle. Once the hedge is released or the loss is minimal, it should be decisively exited; If the purchased item 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.