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The core responses after being trapped are three points:
1. Make decisions quickly
When the trend breaks or the logic fails, decisively reduce your position. Many people hold on until they break even but are trapped again due to greed, which is the most to be avoided.
2. View with clarity
All short-term recoveries are passive remedies. What truly matters is improving your pre-trade capabilities:
- Enhance analysis accuracy
- Strictly adhere to stop-loss discipline
- Control position size limits
3. Differentiate scenarios
Shallow trap with unchanged logic: can hold or do T
Deep trap with a broken trend: assess whether it’s worth holding, and switch positions if necessary
Final reminder:
Investing is a long-term process. Maintaining liquidity and a good mindset is more important than simply chasing quick recoveries. Specific holdings should be based on market analysis. If you need further assistance, feel free to message me.