The root causes of being caught in the contract market are nothing more than three points: misjudgment of trend, lack of risk control measures, and trading emotions dominating decisions. At best, it results in giving back profits; at worst, it can lead to account liquidation and zero balance.



The core principle of resolving trapped positions is to follow the trend and strictly control risks, avoiding stubbornly holding on. When caught in an uptrend, you can hold your position and wait for the market to retrace to key support levels, gradually adding positions to lower the average cost; lightly trapped positions should be decisively reduced or exited, moderately trapped positions can be gradually cut to reduce losses, and deeply trapped positions should prioritize preserving principal rather than stubbornly trying to recover costs. When caught in a downtrend, if the price breaks below key support levels, either cut losses decisively or open a reverse contract to hedge and lock in losses, strictly prohibit counter-trend adding. In range-bound markets, rely on the upper and lower bounds of the range, buy low and sell high for intraday short-term trading, and gradually dilute the cost of trapped positions through wave trading for profit.

Prevention is more important than heavy position liquidation: always set stop-loss orders when opening positions, strictly control the initial position within 10%, only trade in the direction of the trend, and strictly adhere to trading discipline to eliminate being caught at the root. Preserving principal is the fundamental prerequisite for seizing subsequent trading opportunities.
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