How to Deal with Trapped Positions

Sep 26

Strategies for Deeply Trapped Positions:
When your position is deeply trapped, it usually indicates that your initial trade decision was wrong, especially if you encountered a strong one-sided trend. Such trends often move in one direction without reversal. If you naively wait for the price to recover, you will face significant psychological stress and financial loss. The simplest and most effective approach is to cut your losses. This may sound tough, but rather than waiting for months for the price to bounce back—while bearing daily fees and the risk of liquidation—it's better to free up capital for new opportunities. A more strategic move would be to find an experienced trading mentor who can guide you to recover your losses with just a few successful trades.

Handling Shallowly Trapped Positions:
If your position is only slightly trapped, such as just crossing a stop-loss point because no stop-loss was set, then you have room to maneuver. Complete one-sided trends are rare, and it's more likely that short-term fluctuations will dominate the market. In such cases, you can rely on technical analysis to decide whether to exit, and may even turn the loss into a profit. This situation is more common for investors, and it's not difficult to handle if approached correctly with proper market analysis.

Addressing Recurring Trapped Positions:
If you often find yourself in deeply trapped positions, or even if you're not deeply trapped but frequently stuck, then there's a fundamental problem with your trading strategy. The market is fair, and losses are never without reason. To make money in trading, you cannot rely on chance—proper analysis is essential. The most straightforward solution is to learn how to analyze the market effectively and improve your trading skills.

Sep 27

Trade active

On the daily chart of gold, the price hit a new high, rising strongly for six consecutive trading days, reaching a high of $2,685. However, there was a large retracement after the new high yesterday, and the price fell from $2,685 to $2,654, almost giving up all the gains in the day. Despite this, the closing price was high at the end of the day, and the daily line still closed with a small positive line. The current market is in the correction stage in the rising wave, and the short-term volatility has increased.

On the 1-hour chart, the price of gold is still running in the rising channel. Although the K-line pattern shows a short-term high-exploration and fall, the closing price has not fallen sharply, indicating that the decline of the next day is not strong. In the short term, the market may enter a consolidation and correction stage. The middle track of the Bollinger Band is still a key position to support bulls. Focus on the breakout of yesterday's high and low points of 2,685-2,652. The upward momentum has weakened, but the overall weekly trend is still bullish, so the downward space may be limited. At present, it can be treated as a high-level oscillation trend.

Resistance and support analysis:
The upper resistance is around 2678, the high point of yesterday's early morning rebound, where you can short lightly. The lower support is at 2670, which is the intraday long-short boundary. If it effectively falls below 2670, gold may fall to 2660 or yesterday's low of 2654. The key support is at 2620, which is the key area for the previous top and bottom conversion. If it is touched, you can consider going long.
If the price unexpectedly breaks through a new high, it is still recommended to go short lightly above 2680, and it is not recommended to chase high and go long.

Sep 27

Trade active

Gold Trading Strategies

🎯Strategy 1: Go Sell when gold rebounds to around 2670-2673, stop loss 6-10 points, target around 2650-2635, break the position and look at the 2625 line✅

🎯Strategy 2: Go Buy when gold pulls back to around 2622-2625 , stop loss 6-10 points, target around 2635-2645, and look at the 2655 line if the position is broken✅

✴️Strategy orders are divided into two positions at 1:2 or 1:3. The two positions shall not exceed 15% of the total position. A spare position shall be reserved. All positions shall not exceed 20% of the total position;

✴️Strategy orders change SL to the entry price when the profit is more than 3 US dollars. Unless otherwise notified, the original price shall not be re-entered;

✴️Strategy orders implement current price closing, unless there is a clear statement of pending orders or positions, the strategy is only valid for the day; overnight orders are prohibited;

⚠️The trend of the gold market is changing rapidly, and trading strategies may also be adjusted in real time. Investors are advised to place orders cautiously and manage account funds and positions reasonably.

Sep 27

Trade active

🔥Perfect🔥 Done Hit 🎯strategy 1 👏👏👏👏👏👏