The following outlines specific breakeven strategies for the current market (oscillating around a key price level, with a short-term bearish bias) for your reference:
First, clarify the core premise of the trap order and accurately anchor the operational basis.
To breakeven in trading, first understand the details of your positions. Different positions and point discrepancies correspond to different strategies:
(1) Position exceeds 50% (heavy position/full position state)
Regardless of whether you hold a long or short position, prioritize executing the "reduce position to lower risk" operation! You can first reduce your holdings slightly (suggested to reduce 10% - 20% of your position), don't let extreme market conditions directly trigger a liquidation. Keep some funds reserved for future adjustments and replenishments, so as not to suffer a total loss.
(2) The difference between the trap entry point and the current price
- Small gap (e.g., long wick candle traps near the resistance level, trap near the support level): Focusing on "short-term correction opportunities", use small fluctuations to sell high and buy low, quickly reducing costs. - Large gap (e.g. long position trapped at a high level, short position trapped at a low level): Don't blindly "hold on", but evaluate based on the long-term trend. If the major trend contradicts the direction of the trap, take timely stop-loss measures to exit and avoid further losses; if there is a possibility of a trend reversal, consider gradually adding positions to lower the average price.
2. Split the direction to break even on the trapped positions and formulate targeted strategies (in line with the current bearish trend)
When the market is bearish, the breakeven logic for long positions and short positions is different and requires targeted operations:
(1) Long position trap (entering at a high position, currently in floating loss)
Assuming you enter a long position above the resistance level (for example, entering above the key resistance level of 117,000, with the current price around 115,000, and you are currently in a floating loss), you can respond as follows:
1. Seize short-term rebound opportunities and reduce holdings in batches.
If the market rebounds to the previous resistance level/technical key level (such as 116,000 - 117,000, near the middle band of the Bollinger Bands), and signs of pressure appear (such as a bearish candlestick close, MACD divergence, etc.), decisively reduce some long positions! After reducing positions, set a stop-loss for the remaining positions at the recent consolidation lower edge (around 114,000). If it breaks this level, the short-term bearish trend will continue, so be sure to stop-loss in time to avoid being trapped.
2. Two responses after a breakout
- If the price directly falls below the stop-loss level (e.g., 114,000): Don't hesitate, decisively stop loss on the remaining long positions! Avoid the market probing deeper support levels (such as 112,000 - 113,000), which would further expand the losses. - If the price stabilizes and rebounds near the stop loss level: You can add to your long position with a light position to lower the average price, and wait for a rebound to the resistance level (around 116,000) to exit the long position altogether, achieving "breakeven + small profit".
(2) Short position trap (entering at a low point, currently at a floating loss)
Assuming you entered a short position below the support level (for example, entering below the key support level of 113,000, with the current price around 115,000 and facing a floating loss), you can respond with the following steps:
1. Seize short-term pullback opportunities and reduce positions in batches.
If the market dips to previous support levels/technical key levels (such as 114,000 - 113,000), and a stop-loss signal appears (such as a bullish candlestick close, MACD divergence, etc.), decisively reduce some short positions! After reducing the position, set the stop loss for the remaining position at the recent resistance level (such as 116,000). Once it breaks, a short-term bullish correction will start, and timely stop loss will help avoid further losses.
2. Two responses after the breakout
- If the price directly breaks through the stop-loss level (such as 116,000): Don't hesitate, decisively cut losses on remaining short positions! Avoid the market rebounding to higher resistance levels (such as 118,000), which would further expand losses. - If the price is under pressure and falls near the stop loss level: You can lightly add to your short position to lower the average price. Wait for the price to drop to the support level (like 114,000) before exiting the short position altogether, achieving "breakeven + small profit."
3. Avoid breakeven "minefields" and don't let losses worsen.
When breakeven, some actions may seem like "trying to recover losses," but in reality, they can lead to an explosive increase in risk. Be sure to avoid them:
(1) Avoid "holding on without a stop loss"
The current market is greatly affected by macro interest rate hikes, capital deleveraging, and emotional fluctuations, leading to extreme volatility in prices! If you don't set stop losses and hold onto positions, small losses can instantly turn into liquidation, resulting in total loss of capital. You must set stop-loss clearly based on the trap position (for long positions, refer to the lower edge of the range; for short positions, refer to the upper edge of the range), locking the risk within a controllable range.
(2) Avoid "blindly averaging down"
A补仓 is not about "buying more as it falls/selling more as it rises," but rather waiting for key support/resistance levels to stabilize before taking action (e.g., adding to long positions at support levels and adding to short positions at resistance levels). Blindly averaging down will further increase the position; once the market moves in the opposite direction, the losses will double, and the risk will spiral out of control.
Summary: The core logic of breakeven.
Being trapped in a position is not scary; what's scary is operating in a panic without direction. Remember: controlling risk always comes first. Reduce your position and set stop-losses, then combine this with market conditions to sell high and buy low, bringing down your average cost. The market changes constantly, and being flexible in response is the key to breakeven!
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The following outlines specific breakeven strategies for the current market (oscillating around a key price level, with a short-term bearish bias) for your reference:
First, clarify the core premise of the trap order and accurately anchor the operational basis.
To breakeven in trading, first understand the details of your positions. Different positions and point discrepancies correspond to different strategies:
(1) Position exceeds 50% (heavy position/full position state)
Regardless of whether you hold a long or short position, prioritize executing the "reduce position to lower risk" operation!
You can first reduce your holdings slightly (suggested to reduce 10% - 20% of your position), don't let extreme market conditions directly trigger a liquidation. Keep some funds reserved for future adjustments and replenishments, so as not to suffer a total loss.
(2) The difference between the trap entry point and the current price
- Small gap (e.g., long wick candle traps near the resistance level, trap near the support level):
Focusing on "short-term correction opportunities", use small fluctuations to sell high and buy low, quickly reducing costs.
- Large gap (e.g. long position trapped at a high level, short position trapped at a low level):
Don't blindly "hold on", but evaluate based on the long-term trend. If the major trend contradicts the direction of the trap, take timely stop-loss measures to exit and avoid further losses; if there is a possibility of a trend reversal, consider gradually adding positions to lower the average price.
2. Split the direction to break even on the trapped positions and formulate targeted strategies (in line with the current bearish trend)
When the market is bearish, the breakeven logic for long positions and short positions is different and requires targeted operations:
(1) Long position trap (entering at a high position, currently in floating loss)
Assuming you enter a long position above the resistance level (for example, entering above the key resistance level of 117,000, with the current price around 115,000, and you are currently in a floating loss), you can respond as follows:
1. Seize short-term rebound opportunities and reduce holdings in batches.
If the market rebounds to the previous resistance level/technical key level (such as 116,000 - 117,000, near the middle band of the Bollinger Bands), and signs of pressure appear (such as a bearish candlestick close, MACD divergence, etc.), decisively reduce some long positions!
After reducing positions, set a stop-loss for the remaining positions at the recent consolidation lower edge (around 114,000). If it breaks this level, the short-term bearish trend will continue, so be sure to stop-loss in time to avoid being trapped.
2. Two responses after a breakout
- If the price directly falls below the stop-loss level (e.g., 114,000):
Don't hesitate, decisively stop loss on the remaining long positions! Avoid the market probing deeper support levels (such as 112,000 - 113,000), which would further expand the losses.
- If the price stabilizes and rebounds near the stop loss level:
You can add to your long position with a light position to lower the average price, and wait for a rebound to the resistance level (around 116,000) to exit the long position altogether, achieving "breakeven + small profit".
(2) Short position trap (entering at a low point, currently at a floating loss)
Assuming you entered a short position below the support level (for example, entering below the key support level of 113,000, with the current price around 115,000 and facing a floating loss), you can respond with the following steps:
1. Seize short-term pullback opportunities and reduce positions in batches.
If the market dips to previous support levels/technical key levels (such as 114,000 - 113,000), and a stop-loss signal appears (such as a bullish candlestick close, MACD divergence, etc.), decisively reduce some short positions!
After reducing the position, set the stop loss for the remaining position at the recent resistance level (such as 116,000). Once it breaks, a short-term bullish correction will start, and timely stop loss will help avoid further losses.
2. Two responses after the breakout
- If the price directly breaks through the stop-loss level (such as 116,000):
Don't hesitate, decisively cut losses on remaining short positions! Avoid the market rebounding to higher resistance levels (such as 118,000), which would further expand losses.
- If the price is under pressure and falls near the stop loss level:
You can lightly add to your short position to lower the average price. Wait for the price to drop to the support level (like 114,000) before exiting the short position altogether, achieving "breakeven + small profit."
3. Avoid breakeven "minefields" and don't let losses worsen.
When breakeven, some actions may seem like "trying to recover losses," but in reality, they can lead to an explosive increase in risk. Be sure to avoid them:
(1) Avoid "holding on without a stop loss"
The current market is greatly affected by macro interest rate hikes, capital deleveraging, and emotional fluctuations, leading to extreme volatility in prices! If you don't set stop losses and hold onto positions, small losses can instantly turn into liquidation, resulting in total loss of capital.
You must set stop-loss clearly based on the trap position (for long positions, refer to the lower edge of the range; for short positions, refer to the upper edge of the range), locking the risk within a controllable range.
(2) Avoid "blindly averaging down"
A补仓 is not about "buying more as it falls/selling more as it rises," but rather waiting for key support/resistance levels to stabilize before taking action (e.g., adding to long positions at support levels and adding to short positions at resistance levels).
Blindly averaging down will further increase the position; once the market moves in the opposite direction, the losses will double, and the risk will spiral out of control.
Summary: The core logic of breakeven.
Being trapped in a position is not scary; what's scary is operating in a panic without direction. Remember: controlling risk always comes first. Reduce your position and set stop-losses, then combine this with market conditions to sell high and buy low, bringing down your average cost. The market changes constantly, and being flexible in response is the key to breakeven!
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