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How to relieve worries? Only by solving the problem.
A losing position is not scary; what’s scary is handling it the wrong way.
1. Shallow Loss (not much loss)
If the market is volatile,
wait until the price rebounds close to your cost,
sell a part first,
don’t think about doubling your money in one go; reduce risk first.
If it’s confirmed to be a one-way decline,
then be decisive, take a small loss and exit,
dragging it out will only deepen the loss.
2. Deep Loss (more loss)
Step one, cut half of your position to protect your principal,
remember one thing:
👉 The more it falls, the more you add, which is the easiest way to get margin called.
Once the market stops making new lows and begins to stabilize,
use small positions to buy low and sell high,
gradually hedge the original loss with profits,
slowly bring down the cost.
If the trend continues to weaken and shows no signs of recovery,
then don’t hold on stubbornly,
accept the loss and clear the position, save bullets for the next opportunity.
3. Locked-in Loss (long and short positions)
First, see which side is losing more,
prioritize closing the larger loss position,
don’t bleed from both ends at once.
After unlocking,
don’t lock positions randomly again,
follow the current trend with light positions,
use profits from new trades to fill the gaps of old ones.
4. The Iron Law to Follow
Don’t hold on stubbornly or be greedy; use no more than one-third of your usual position,
avoid frequent operations; fees are more painful than you think,
set stop-loss orders; leave when it hits the limit, don’t gamble on luck.
In summary:
Survive first, then talk about turning things around.
There will always be opportunities,
but if your principal is gone, the opportunities are gone too.