When facing Tied Up situations or unfavorable market conditions, you can adopt the following response strategies based on different circumstances:



Decisive Stop Loss: Applicable when the market suddenly drops after buying at a high position, it is necessary to exit in a timely manner to preserve the principal, avoid deep Tied Up, and leave sufficient funds to wait for subsequent opportunities.

Hedging operation: When Tied Up deeply and unable to stop loss, and the market continues to fluctuate in one direction, it is used to buffer losses by opening a reverse position, which is a backup plan under helpless circumstances.

Intra-day trading: suitable for volatile markets, focusing on high selling and low buying to reduce costs around positions, but requires high attention and skills, beginners should be cautious.

Reasonable averaging down: mostly used in the late stage of a unilateral market or during a low-level fluctuation phase of the index, operations should be confirmed after the bottom is identified, to avoid blindly averaging down which leads to being increasingly Tied Up.
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