Methods for Releasing Positions

1. Active Release Strategies

1. Cut Loss

If it is discovered that buying was a serious mistake, especially if purchased at the peak of a previous surge, one must have the determination to decisively cut losses in order to protect capital. There are many opportunities in the cryptocurrency market; as long as capital does not suffer significant losses, one can always earn it back.

2. Swap Coins

When the current cryptocurrency is trapped and in a weak position with further downside potential, if one accurately judges that another cryptocurrency has a larger upside potential and a stronger trend, one can decisively swap to the new cryptocurrency to offset losses from the old cryptocurrency.

3. Short Selling

When it is confirmed that one is deeply trapped and cannot cut losses, and if the market or a particular cryptocurrency has further downside potential, one can use short selling to first sell the trapped cryptocurrency and then buy it back at a lower position, effectively reducing costs.

2. Passive Release Strategies

1. Averaging Down

If the buying price is not high or if one is firmly optimistic about the future market, the averaging down technique can be used. However, ordinary investors usually can only withstand one or two rounds of averaging down, so the timing for averaging down is crucial.

2. Waiting

When fully invested and deeply trapped, unable to cut losses or add to the position, one can only wait passively. As long as it is one's own money, not borrowed or loaned, there is patience to wait.

One must not act emotionally, blindly add to the position, or easily cut losses in a chaotic manner. Being trapped is not to be feared; sometimes, not being trapped means not making money, and being trapped may actually lead to big profits. Therefore, do not simply view being trapped as a disaster; if handled properly, it can completely turn into an opportunity.

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