Don't panic when you're Tied Up! Ten years of practical breakeven logic: identify the essence, control risks, and choose the right timing.
In the face of being Tied Up with positions, the core principle to follow is "first identify the essence, then control risks, and finally make decisions opportunistically"; blindly cutting losses or averaging down will only exacerbate passivity. Drawing from ten years of practical trading experience, I share this directly implementable breakeven plan:
First, accurately define the core driving forces of the position: for purely speculative targets (without performance support, relying on hype), if Tied Up, decisive stop-loss is necessary—conceptual market pullbacks are often trend reversal signals, and delaying will magnify losses; for fundamentally driven targets (stable performance growth, reasonable valuation, industry logic intact), you can reduce positions in batches to relieve pressure, retaining core chips for trend recovery.
Additional purchases must set strict thresholds: After being Tied Up, do not rush to dilute costs; a -10% pullback is a normal fluctuation, and at this time, additional purchases are prone to the "the more you buy, the more trapped you become" trap; for fundamentally solid targets, the additional purchase points can be set around -30% (adjusted according to industry prosperity), patiently waiting for the valuation to return to a reasonable range, and avoid emotional trading.
Exit strategically during rebounds: The rebound of speculative targets is often a short-term correction. Seize the opportunity to decisively take profits and cut losses to avoid being Tied Up again. For targets where the fundamentals remain unchanged, if the rebound does not break key resistance levels, you can continue to hold and wait for the trend to continue, without blindly acting due to short-term fluctuations.
The essence of trading is risk control. Being Tied Up is not scary; what is scary is losing the market's logical judgment. Remember: breakeven strategies should be based on the understanding of the core value of the underlying asset. Rejecting a mentality of luck is essential for long-term survival in the market.
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