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Trap orders are indeed an unavoidable hurdle in trading, but passively waiting is not as effective as actively breaking the situation. Here’s a more practical response strategy to help you minimize the damage caused by trap orders:
If you are in a slight trap, don't get tangled up. Either close your position decisively when there is a rebound, or reduce half of your position at a high point to lower the risk. If you are in a deep trap, don't hold on stubbornly. Gradually reduce your position in 3-5 batches; keeping your principal gives you a chance to turn things around. Emotional averaging down will only add fuel to the fire.
Watching technical levels for more effective decisions: If you’re trapped at a high position and the trend turns around, don’t hold onto false hopes and quickly stop loss; if trapped in the middle position, keep an eye on key moving averages, and when it rebounds to resistance levels, sell part of your holdings; if trapped at a low position, don’t rush to cut losses, wait for the support levels to stabilize, and add a small position to lower costs, then sell together during the rebound.
Trends are the best navigation: being trapped in a rising market is often temporary, hold on and wait for profits; in a volatile market, focus on the upper and lower bounds of the range, and run half when reaching the peak; in a downtrend, if you're trapped, don't wait, stop-loss is a matter of survival.
After all, the root of the trap order often lies in not setting a stop-loss when opening a position, or holding on to a position until it becomes deeply trapped. Remember: no matter how accurate your analysis is, it is more practical to use a light position plus a stop-loss; no matter how good your mindset is, you cannot withstand the torment of a heavy position. The core of actively escaping the trap has never been to wait for the market to save you, but to first safeguard your risk bottom line.
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