What to do when you're trapped? Basically, you need to find a way to get out of trouble. Depending on the level of loss and position size, the approach varies completely. Let's analyze each case.
**Market Fluctuations and Shallow Traps** This situation is actually the easiest to handle. Wait for the rebound to return to your cost basis, but don't expect the value to continue rising. Quickly take some profits and lock in gains. If you encounter a one-sided sell-off, just cut your losses and exit. Hesitation will only deepen the loss.
**Significant Drop and Deep Traps—How to Break Free** First, cut your position in half to at least preserve your principal. Never add to your position during a decline—that's a deep pit. Then, patiently wait for the market to stabilize and stop making new lows. Use a very small position to trade swings—buy low and sell high to earn profits, which can be used to offset the trapped position's losses. Gradually, this will lower your average cost. But if the trend continues to deteriorate, accept the loss and clear your positions, saving some capital for the next opportunity.
**Both Long and Short Positions Locked—Caught in Both Sides** This is the most awkward lock. First, see which side is losing more and close that losing position first—don't let both sides bleed. After unlocking, avoid locking positions again. Follow the current main trend with small positions to open new trades. Profits from these new trades can help fill the previous gaps.
**Bottom Line Principles to Avoid** Keep your position size within one-third of your usual scale. Don't trade too frequently—transaction fees can eat up a large portion of your profits. Set a clear stop-loss level and exit when reached; don't rely on miracles or hope for a reversal. Main cryptocurrencies like SOL, XRP, and BTC are most valuable for reference during volatile markets, but the core to breaking trapped positions is execution and mindset.
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BloodInStreets
· 10h ago
Sounds good, but isn't it just another old cliché of "cut losses and walk away"? The real question is, how many people can actually do it...
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GasWaster
· 10h ago
That's right, but the real challenge is the mindset. When I see a limit-down, I want to buy more. I need to change this habit.
View OriginalReply0
CryptoSurvivor
· 10h ago
There's nothing wrong with that, but knowing what to do and actually doing it are two different things. When you're truly trapped, everyone wants to gamble on a miracle, and mindset is the biggest enemy.
View OriginalReply0
MetaReckt
· 10h ago
Really, stop-loss is all about testing your mentality. It's easy to talk about but hard to actually cut the meat when it comes to doing it.
What to do when you're trapped? Basically, you need to find a way to get out of trouble. Depending on the level of loss and position size, the approach varies completely. Let's analyze each case.
**Market Fluctuations and Shallow Traps**
This situation is actually the easiest to handle. Wait for the rebound to return to your cost basis, but don't expect the value to continue rising. Quickly take some profits and lock in gains. If you encounter a one-sided sell-off, just cut your losses and exit. Hesitation will only deepen the loss.
**Significant Drop and Deep Traps—How to Break Free**
First, cut your position in half to at least preserve your principal. Never add to your position during a decline—that's a deep pit. Then, patiently wait for the market to stabilize and stop making new lows. Use a very small position to trade swings—buy low and sell high to earn profits, which can be used to offset the trapped position's losses. Gradually, this will lower your average cost. But if the trend continues to deteriorate, accept the loss and clear your positions, saving some capital for the next opportunity.
**Both Long and Short Positions Locked—Caught in Both Sides**
This is the most awkward lock. First, see which side is losing more and close that losing position first—don't let both sides bleed. After unlocking, avoid locking positions again. Follow the current main trend with small positions to open new trades. Profits from these new trades can help fill the previous gaps.
**Bottom Line Principles to Avoid**
Keep your position size within one-third of your usual scale. Don't trade too frequently—transaction fees can eat up a large portion of your profits. Set a clear stop-loss level and exit when reached; don't rely on miracles or hope for a reversal. Main cryptocurrencies like SOL, XRP, and BTC are most valuable for reference during volatile markets, but the core to breaking trapped positions is execution and mindset.