Being trapped is not the end of the world; methods are more important than mindset.
1. Trend Break: Act decisively with a stop-loss to retain strength.
When the price of the coin breaks out of a downward trend and completely diverges from the position direction, immediately stopping loss is the most effective self-protection. Especially for altcoins, the downside potential is hard to predict, and holding on might turn a shallow trap into a deep one. Set a stop-loss line at 2%-5% of total funds; exit when touched to avoid emotional interference.
2. Heavily Trapped: Reduce positions to lower risk and gradually release.
When fully trapped, prioritize reducing half of the position to release liquidity. Set dynamic stop-loss for the remaining position (for example, reduce positions in batches when rebounding to resistance levels). Holding cash allows you to seize subsequent opportunities. Holding on to a heavy position will only result in losing initiative and even lead to liquidation.
3. Oscillating market: swing trading, reduce costs
If the price oscillates repeatedly within a range, a high sell-low buy strategy can be adopted: reduce positions near the upper edge of the range, and average down when it falls to the lower edge. Each operation aims to lower the holding cost, and when rebounding near the cost line, prioritize realizing some profits, gradually breaking even.
4. Target selection: treat mainstream and altcoins differently
• Major currencies (like BTC, ETH): strong fundamentals, can average down in batches when trapped shallowly, use dollar-cost averaging to reduce costs; when deeply trapped, it is necessary to combine with the overall trend judgment to avoid blind averaging down.
• Altcoins: assets with no popularity and no trading support should be decisively sold to stop losses. Do not fantasize about a 'comeback'; these coins carry a very high risk of going to zero.
5. Contract locking: use cautiously to avoid expanding risks
When contracts are trapped and the direction is unclear, short-term locking can avoid further losses. However, spot locking has limited significance, especially under high transaction fees, which may increase the burden. Unlocking needs to wait for a clear trend, close out the positions against the trend, and retain the positions in line with the trend.
Core principle:
• Stop-loss is better than averaging down: admitting mistakes is more practical than fantasizing about rebounds;
• Position management determines survival: individual risk should not exceed 2% of total capital, diversify holdings;
• Reject emotional trading: avoid averaging down or leveraging up.
Whether one can turn around after being trapped depends on the strict execution of discipline. Rather than passively waiting, it is better to actively adjust strategies—the market always rewards rational players.
Follow me @bit萧 , no boasting, no empty promises, just sharing the real skills that help you survive in the market! Continuing to work in the evening, recovering losses and flipping positions, hurry up and join! $SOL
