As an investor who has been involved in the cryptocurrency market for many years, we will inevitably encounter situations where our positions are trapped. There is no 100% success rate in predicting, especially when the market fluctuates greatly, it is most likely to encounter trapped positions. So, what should we do if our positions are trapped? The best and fastest way is of course to immediately stop loss and exit. However, many investors are unable to do this, so how do we solve this trapped position? Today, I will teach you some simple ways to solve the problem.

I. Resolutely exit according to the standard stop loss

Perhaps this method may not be accepted by a large number of investors, but for now, this is the fastest and most effective way to control capital risk. Why is that? Today, I will mainly introduce 4 ways to solve the problem. Compared to stop loss, the other methods have too many uncontrollable factors, which increase the possibility of expanding losses. So, if you want to quickly solve the trapped position, the best way is still to recommend the first method of stop loss and exit, and then proceed to the next operation to solve the previous loss through profit.

II. Exit through locking positions

Locking positions, for investors who have been in the market for a relatively long time, is not unfamiliar, but many novices are not clear about it. What does locking positions mean? It means operating in a way where the same variety and the same position are bought and sold in half, and immediately closing one side when the market reverses, and then adding positions in the other direction. When the market rebounds, close all positions to make a profit and solve the trapped position. For example, buying 1 bitcoin at 10,000, but the market has been going down recently. When it is expected that the market will continue to go down at 9,990, at this point, sell short 1 bitcoin. In this way, the space for our loss is locked at 10 dollars. When the market falls to around 9,980, it is expected that the market will rebound. At this time, close the short position in hand and add a long position at this level. When the market rebounds above 9,990, all our positions have been solved and we can exit, waiting for the next opportunity. Remember, locking positions requires margin, so it is limited to a small amount of capital. And it is not easy to grasp the market reversal point, so this operation requires strong judgment. Otherwise, the trapped position cannot be solved.

III. Solve the trapped position through hedging

What is hedging? Hedging means creating different investment portfolios. For example, when we are losing money in long positions, if you judge that the market will continue to decline, we can make a profit through short selling to make up for the loss in long positions. When we exit, the trapped position is basically solved. In simple terms, one product loses money, and the other product makes money to achieve the goal of making a profit. However, this method also has a drawback, which is that it also requires a very large amount of capital. If your capital is very small, it is not recommended to choose this method. If you are slightly careless, not only will you not achieve the goal of solving the trapped position, but you will also deepen the trapped position. This is what is commonly referred to as "Tian Di Suo."

IV. Wait for the market to reverse by holding the position

Holding the position means holding the losing position without making a profit or exiting. This method is currently the most common method I have seen among investors. Usually, once a position is trapped, at the beginning, they are reluctant to stop loss, holding a mentality of luck, believing that the market will reverse, not realizing that they have gradually stepped into a pit of fire. When the loss continues to expand, the loss is already too large, and there is almost nothing left to cut. Therefore, they choose to continue holding until the reversal and profit are achieved. It is not that this method is not recommended, but this method requires very strict control of capital and position. If you are slightly careless, your position will be liquidated directly. Unless you have a very large amount of capital, it is not recommended for individual investors to use this method to solve the trapped position. Without absolute certainty, do not use this method lightly.

Of the four methods, the fastest is undoubtedly the first method of stop loss. If your capital is not ideal, I suggest that you try to choose the first or second method to solve the trapped position. Whether it is the third or fourth method, strict control of capital and position is required. Otherwise, if you are not careful, your position will be liquidated. Safety of funds comes first in investment. Only when the funds are safe can profits come faster. I wish you all successful trading and continuous improvement.

The above four methods are currently the simplest ways. If you are still confused and don't know how to solve the trapped position, you can learn from them. I hope it can be helpful to everyone, but at the same time, I also ask all investor friends to be cautious. Regardless of which method, it requires a very high demand on mentality. If your mentality is not good, it is easy to affect your judgment and not achieve the goal of solving the trapped position.

I am a teacher engaged in spot analysis and guidance. If you see my article, it is fate. If you choose me, it is trust! There is only one road that cannot be chosen, and that is the road of giving up. There is only one road that cannot be refused, and that is the road of growth. If you want to dig a well, you have to dig until water comes out. If you have any questions, please follow Lao Feng's WeChat public account!

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