Practical skills for turning losses into profits after being trapped

The so-called unlocking refers to using various methods to turn losses into profits or minimize losses after being trapped. The essence of dismantling can be attributed to diluting costs. Once the cost is below zero, it is considered a successful dismantling. Below are several common ways to solve the problem, for investors' reference only.

1. Low level replenishment

This is the most widely used and simplest method of solving problems. When investors are trapped at a high level, they choose to hold their position and then replenish their position at a low level, that is, buying the currency again at a lower price, in order to unwind through the rebound or reversal of the exchange rate. When the exchange rate rebounds, the losses of high-level buying positions gradually decrease, and the profits of low-level buying positions gradually increase. In this way, even if the exchange rate does not return to its original height, investors are more likely to realize the solution. If the market develops well, there will still be opportunities for profit. In addition to simple single replenishment, low-level replenishment can also be divided into three modes: pyramid replenishment, uniform replenishment, and inverted pyramid replenishment.

2. Turn to a crossover plate

Cross trades, which refer to currency pairs that do not include USD quotes, such as EUR/GBP, GBP/JPY, etc., are all cross trades. Most investors prefer to look at straight trades, but there are also many opportunities in cross trades, especially when trapped, switching to cross trades will be more flexible.

3. Inverse price difference

Reverse spread, commonly known as "sell high and buy low", is also a very easy way to unwind. When the exchange rate is in a range oscillation, the hedge position is closed at a relatively high level, and when the exchange rate falls to a relatively low level, it is bought again, waiting for the high level to sell again, in order to earn the middle spread and achieve the purpose of diluting costs.

When conducting reverse price operations, one should avoid paying too much attention to the hourly chart, as it fluctuates frequently and may lead to errors in judging the entry and exit points, missing the best point. It is recommended to refer to the 4-hour chart for more operations.

4. Reduce inventory at high prices

Reducing positions at high prices, as the name suggests, is to advise the trapped investors to cut their positions as soon as possible, but the premise is that the investors have confirmed that their market judgment is incorrect. The way is to decisively close their positions at high prices during the rebound market, or to close a portion of their positions. This is the last resort in the strategy of unraveling, a "escape" tactic adopted in situations where unraveling is hopeless.

The heavier the investor's position is, the more suitable it is to reduce it early when the market is high, and the greater the delay, the greater the loss. This fully embodies the principle that 'time is money'.

It should be noted that decoupling is a passive remedial measure when the investment has already suffered losses, and there is a risk of continued losses. Therefore, when using these methods, it should be determined according to one's own situation, and should not be blindly used indiscriminately. Otherwise, it may end up with a "kill one hundred enemies, self damage three thousand" outcome.