Don't panic if you're caught in a trap. Many people, once they experience losses, become panicked and rush to cut losses or go all-in to double down, often making the situation worse. Being trapped itself isn't the problem; the real issue is the mindset you adopt to handle it.

Today, we'll discuss two approaches: one proactive, one conservative. Choose based on your situation.

**Proactive Breakthrough: Take Control**

Chasing high and getting trapped? First, check if the coin still has upward potential. If the positive news has been mostly digested and there's no fundamental support, it's better to cut losses decisively rather than wait passively. Holding cash allows you to strike precisely when the next opportunity arises. Sometimes, taking a 5% loss early is healthier than being forced to sell at a 50% loss later, protecting both your mental health and your account.

Of course, some people prefer not to cut losses. In that case, consider another approach—look at your other holdings. If Coin A is falling steadily and technical indicators have broken down, but you have Coin B accumulating at low levels, and your funds permit, consider switching. Use profits from B to offset losses from A. This not only activates your capital but also provides new operational opportunities.

Alternatively, consider swing trading. If you believe the market will fall further, sell part of your position to lock in risk, then buy back at lower prices. Repeating this high-low cycle can effectively lower your average cost and accelerate your way out of the trap.

**Conservative Defense: Time Is Space**

If your entire position is trapped and you have no spare funds to operate, the real test is your mindset. If your purchase price wasn't at a historical high and you remain optimistic about the coin's long-term prospects, consider gradually adding small amounts (the key is small—never go all-in). Buying in stages at low levels can optimize your cost basis and prepare for a rebound.

But the most critical condition is: use funds that won't affect your daily life. If you're trading with borrowed money or funds essential for living, then waiting isn't the solution—it's immediate stop-loss. When facing risk, nothing is more important than protecting your capital.

Expectations of Fed rate cuts and market cycle fluctuations are normal. Being trapped isn't the end; rebounds and recoveries will come, provided you survive until then. Avoid impulsiveness, stay rational, and remember that the market is always preparing for the next opportunity.