1、 What is the method to unwind stocks?
1. Downward spread method (premise: judging that the future market is downward): When the rebound reaches a certain height and it is estimated to have reached a short-term high point, sell first and buy back after it has fallen for a period of time. By continuously selling high and buying low in this way to reduce the cost of stocks, and finally waiting for the total funds to make up for the losses, complete the liquidation, and make a profit, then sell all of them.
2. Upward spread method (premise: judging that the future market is upward): First buy the stock at the low point, wait for it to rebound to a certain height, estimate that it has reached a short-term high point (it may not be able to reach the price at which the first purchase was hedged), and then sell. By operating back and forth several times in this way, the cost of stocks was reduced, losses were compensated, and the situation was resolved.
3. Lowering the average price method (premise: there is still a large amount of cash): For each drop, double the purchase of the same stock to lower the average price. This way, when the stock rebounds or rises, it will be released from the market. This method is also known as the pyramid method.
4. Single day T+0 method: Because stock prices fluctuate every day, seize these fluctuations to make an impact. For example, if 100 shares were trapped yesterday, you can buy 100 shares first today, and then sell 100 shares when the stock price rises; You can also sell 100 shares first, and then buy another 100 shares when the stock price drops. By the close of today's trading, there will still be 100 shares,But I have already bought and sold one or several back and forth. One in one out or several in and several out, the closing quantity is the same as yesterday, but the cash has increased. This can reduce costs until the stock is released.
5. Stock swap method: When you feel that your stock has little chance of going up, you can choose a stock with a price similar to that of the stock and a chance of going up to exchange it, that is, equivalent (or basically equivalent) to exchange for a stock with hope of going up, so that the profit from the rise of the stock you bought later can offset the loss caused by the decline of the stock you bought earlier.
6. Half position rolling operation method: The method is similar to the downward spread method, upward spread method, and single day T+0 method. But it's not full warehouse entry and exit, but half warehouse entry and exit. The advantage is that it can prevent errors and facilitate entry and exit.
2、 How long does it usually take for stocks to unwind?
After a stock is trapped, the time required to unwind may not necessarily be the same, and it needs to be considered based on the investor's unwind strategy, market conditions, and individual stock situation.
In a bull market, the overall market is on an upward trend, with individual stocks generally rising. The individual stocks purchased by investors may be hedged, which may be driven by the overall market and experience an upward trend. Within a few days, the stock price may return to above cost price, resulting in a profitable situation and allowing investors to successfully unwind; In a bear market, the market situation is sluggish and individual stocks generally decline. Influenced by the overall market, individual stocks may experience a unilateral decline, causing investors to be deeply trapped and wait for several years before being released.
After a stock is trapped, investors adopt an investment strategy of selling high and buying low, that is, throughWhen a stock rebounds, sell the stock in your hand. After the stock rebound ends and a new low appears, buy the stock to earn the price difference and reduce overall losses to unwind. Alternatively, you can spread the cost price by performing replenishment operations during the stock's decline and wait for the stock to rise to unwind. The time it takes is shorter than holding onto a stock and waiting for it to rise to unwind.
At the same time, some stocks need to undergo a brief pullback due to their rapid rise in the early stage. After the pullback, the stocks continue to rise, and in this case, they are trapped, and their release time is also relatively short.
If a stock experiences losses for several consecutive years due to poor performance, investors will be trapped and the required time will be longer, and even the company may be delisted, resulting in investors being forced out.
From the above content, we know that after a stock is trapped, we need to find a way to unwind. If it is trapped for a few years or longer, it will also result in losses in the future. Therefore, we need to find ways to reduce costs and make up for the losses.
