There are two situations where investors are trapped: one is due to poor short-term operations leading to being trapped, which is easy to solve. However, most of the trapped investors now belong to the second situation, where the stock market experiences a large-scale collapse and decline due to systemic risks leading to being trapped. In this situation, the difficulty of solving the problem increases, and some misunderstandings should be avoided as much as possible.

1. Don't be afraid of being trapped, I'd rather die than sell, and if I don't sell, I won't compensate.

This idea is terrifying because no one can predict where their stocks will fall. Many people hold this mentality and fall from 20 yuan to 5 yuan, then from 5 yuan to 2.5 yuan, until they completely collapse. Better die than sell, this is one of the misconceptions.

2. Replenish inventory.

This method is the least practical in my opinion, especially in a situation like the current almost complete collapse, where replenishing positions can only become more and more difficult. Retail small stocks should never be compared to funds. Funds can invest large amounts of money based on judgment, but retail funds are limited and the water is too deep. A slight mistake can easily lead to drowning.

3. I don't know what stop loss is.

This is the biggest reason why retail investors continue to lose money after investing. Many investors throw their entire wealth into the stock market, and then sit on pins and needles all day long, staring at the stock market situation with their eyes fixed on it. They sweat profusely and are exhausted, still unwilling to give up, very persistent. However, in the stock market, persistence is not enough. Without the concept of stop loss, it's like jumping into a fire without knowing how to save oneself. Stock investors need to learn more about stop loss knowledge and improve their professional skills. As the saying goes, sharpening a knife does not harm chopping wood.

How to untie after being trapped? Below are a few ways to solve the problem. I hope it can be helpful to everyone.

Whether it's new investors or our old investors, they all face this problem. What should we do if our stocks are trapped due to careless stock selection? Annie has summarized several solutions to solve this problem:

The best strategy is to identify a good stock, adjust positions and exchange shares, and quickly make up for the deficit.

Medium strategy: Sell high and buy low to reduce costs, but require technical expertise. (We can develop a detailed solution, including prompts for buying and selling points!)

Bottom line: Passive release, holding on tightly (taking the elevator back and forth)

The first thing we need to do is stop loss. Once there is a stock selection error or a market downturn, timely stop loss is the most basic skill for every investor. Take profits without greed, stop loss cannot be delayed.

1. Fixed stop loss method

This is the simplest stop loss method, which refers to setting the loss amount to a fixed percentage, and closing the position in a timely manner once the loss exceeds that percentage. It is generally suitable for two types of investors: first, investors who have just entered the market; The second is investors in high-risk markets such as futures markets. The mandatory effect of fixed stop loss is quite obvious, and investors do not need to overly rely on their judgment of the market.

The setting of stop loss ratio is the key to fixed stop loss. The proportion of fixed stop loss is composed of two data:

The first is the maximum loss that investors can bear. This ratio varies depending on investors' mentality, economic capacity, and other factors. It is also related to investors' profit expectations.

The second is the random fluctuation of trading varieties. This refers to the disorderly price fluctuations caused by the behavior of market trading groups in the absence of external factors. The setting of the fixed stop loss ratio is to find a balance point between these two data points. This is a dynamic process, and investors should set this ratio based on experience. Once the stop loss ratio is set, investors can avoid being shaken out by meaningless random fluctuations.

2. Technical stop loss method

The more complex one is the technical stop loss method. It combines stop loss setting with technical analysis, eliminates random market fluctuations, and sets stop loss orders at key technical levels to avoid further expansion of losses. This method requires investors to have strong technical analysis skills and self-discipline. The technical stop loss method has higher requirements for investors compared to the previous one, and it is difficult to find a fixed pattern. Generally speaking, using the technical stop loss method is nothing more than betting on big profits with small losses. For example, after buying at the bottom of the uptrend, wait for the end of the uptrend before closing the position, and set the stop loss level near a relatively reliable average moving line. As for the Shanghai Stock Exchange, when the overall index rises, the 5-day moving average can maintain a short-term trend, while the 20 day or 30 day moving average will maintain a medium to long-term trend. Once the upward trend begins, you can intervene at the 5-day moving average and set the stop loss near the 20 day moving average. This not only allows you to enjoy most of the profits brought by the stage's upward trend, but also allows you to escape in a timely manner when the head is formed, ensuring profits. In the early stages of an uptrend, the difference between the 5-day moving average and the 20 day moving average is very small. Even if you misread the market and cut losses near the 20 day moving average, the losses will not be too significant.

For example, after the market enters a consolidation stage (market situation), it usually appears in a box or convergent triangle shape, and the divergence rate between the price and the medium-term moving average (usually 10-20 antenna) gradually decreases. At this point, investors can intervene at the technical maximum divergence rate and set the stop loss level at the maximum divergence rate of the market. This way, you can buy low and get high, and obtain the price difference. Once the divergence rate of the price from the medium-term moving average is amplified again, it means that the market has ended. If the price enters a downward trend at this time, investors should decisively leave the market. The market situation is relatively one-sided. In the early stages of the market, the market is unstable and volatile, and traders can boldly intervene. In the later stage of the market, the stop loss range should be appropriately reduced to increase the insurance factor.

3. Unconditional stop loss method

The stop loss that runs away without considering costs is called unconditional stop loss. When the fundamentals of the market undergo a fundamental turning point, investors should abandon any illusions and rush out regardless of cost in order to preserve their strength and seize the opportunity to fight again. Fundamental changes are often difficult to reverse. When the fundamentals deteriorate, investors should make a decisive decision to cut their positions and exit.

In summary, stop loss is a necessary means of controlling risk, and investors should have their own styles on how to use stop loss tools effectively. In trading, investors' grasp of the overall position and trend of the market is crucial. Use stop loss more in the high price circle, use it less or not in the low price circle, and in the medium price circle, it should be determined according to the market movement trend. Taking advantage of the situation and using the stop loss level well is the only way for investors to win.

Stock swap is an active strategy for resolving conflicts, and when used properly, it can effectively reduce costs and increase opportunities for resolving conflicts. But stock swap is also a risky way to unwind. If there is a mistake in operation, it will result in losing both the wife and the soldiers. So investors need to be very cautious when exchanging stocks, and in practical applications, they need to master the rules of stock exchange.

1、 Keep the small and exchange for the big. Small cap stocks are prone to being selected by more market makers for control due to their low cost of capital restructuring. As a result, small cap stocks tend to be more active and have stronger trends than the overall market. So, small cap stocks are the preferred variety for outperforming the trend and holding stagnant stocks.

2、 Keep low and switch high. Low priced stocks are generally overlooked by the market, and their investment value is often underestimated by the market. Moreover, due to their low absolute position, low-priced stocks have limited room for further decline and lower risk. If it is a low-priced stock that has fallen deeply from a high position, it has a certain potential for upward movement because it is far away from the concentrated area of the upper bound. The price of high priced stocks themselves implies high risk, which puts significant adjustment pressure on high priced stocks. Therefore, when converting stocks, it is necessary to exchange for high priced stocks and retain low-priced stocks.

3、 Replace old with new. Due to the lack of expansion, the circulation of new and secondary stocks is biased, and they may be controlled by the main force. Moreover, for newly listed stocks that have not been wildly speculated on for a long time, they are less likely to be trapped in the upper tier market. Plus, the newly listed stock has just raised a large amount of cash, which often has new profit growth points. These factors can easily trigger the hype enthusiasm of mainstream funds.

4、 Replace the strong with the weak. Characteristics of weak stocks: If the market is adjusted, weak stocks tend to fall with the market, often exceeding the range of the market; If the market rebounds, even if weak stocks follow the market rebound, their strength will still be relatively weak. So, once investors discover that they hold such weak stocks, whether they are trapped or profitable, they should clear their positions in a timely manner and choose strong stocks. This is the only way to effectively ensure the utilization rate of funds.

5、 Exchange stocks with high volume at the bottom for stocks with no volume at the bottom. What is being exchanged is for something that can rise and rises quickly. Anything that increases volume at the bottom will be weaker than the overall trend of the market when following the ups and downs of the market. Even if it is selected by the market makers in the future, the main force will push it down to attract funds before building temporary positions. If there are already stocks owned by Zhuang and they are not trading at the bottom, it can only indicate that the main force has already absorbed a lot of goods and is thinking about how to distribute them. The future upward potential can be imagined. So, when switching stocks, it is important to pay attention to bottom volume stocks as much as possible.

6、 Exchange mainstream sector stocks for niche stocks. Some obscure stocks only fluctuate within a few cents a day and have few transactions throughout the day. If you have these stocks in your hands, you should sell them early and exchange them for mainstream stocks that have not yet seen significant gains.

7、 Exchange stocks with potential themes for stocks with clear themes. There are often vague themes circulating in the market, and whether they are true or not is not important. As long as they can gain the recognition of the investing public, stock prices often perform well. But once the theme becomes clear, the hype ends. So, when exchanging stocks, it is important to choose stocks with potential obscure themes, rather than stocks that have already been cashed out.