"Complete and Refined Version of How to Unlock from a Position"

How to unlock? First, you need to understand how the position was formed and how you got trapped.

First: The wrong direction was taken, chasing gains and cutting losses in the wrong way. When at the upper band, reduce long positions to protect capital, raising the breakeven point, and it’s also a good time to start trying to enter short positions. When a certain coin is stuck at a resistance level and cannot move up, this is the time to open a short position. At this point, you should reduce long positions or exit, rather than chasing the rally. Conversely, when the price is falling sharply, it’s the opposite of the previous approach—these are all signs of wrong direction.

Second: Poor position management. Position management is very important, second only to correct direction judgment.
If the initial position is heavily weighted, subsequent replenishments will be difficult, and over time, positions will become heavier and heavier, ultimately leading to a margin call or liquidation.

The correct strategy should be: label the first entry with 1U, then enter a light position for the second, and a normal position for the third, avoiding heavy positions.
Heavy positions lead to an inability to add to the position later, so it’s essential to leave enough room above the current resistance level for adding positions.

Third reason: Greed.
If profits are not taken, floating gains are just illusions; unrealized gains are meaningless, and unrealized losses are just paper losses. The gains you see are just on paper, not real.
After setting a breakeven stop-loss, the position remains profitable and will not generate floating losses.

Fourth: Not strictly executing your trading strategy.
When it’s time to enter, you hesitate; when it’s time to exit, you miss the opportunity.
Heavy positions are taken when they should be light, and chasing rallies or cutting losses impulsively occurs. These combined factors lead to being trapped and temporarily unable to escape.
Therefore, strictly following your trading plan can help avoid getting trapped.

These four reasons stack up and lead to being stuck.

Summary:
1. Chasing gains and cutting losses in the wrong direction.
2. Poor position management, heavy initial positions, and inability to add later.
3. Greed, unrealized gains turning into unrealized losses, compounding the previous two mistakes.
4. Having a plan but not strictly executing your trading strategy.

How to unlock:
1. Exit near the entry price (exceeding or close to the entry price) or when slightly profitable (the optimal solution).
2. When the direction was correct but due to reasons like not monitoring the market timely, you got trapped.
(1) For heavily weighted positions, refer to the first point—do not add to the position. If long positions are trapped, approach the next level of resistance and strictly execute one of these actions: reduce the position or just run away, admit the mistake, and treat it as a learning fee.
(2) For light positions, there are two scenarios:
- First, run away near the resistance level.
- Second, miss the opportunity to reduce the position at the current resistance, then add three times the position at the lower band to average down, and then exit when slightly profitable near the entry price. No matter how much profit accumulates afterward, do not be greedy.

A particularly important note:
Profits can be left uncut, aiming for better positions is acceptable, but you must set a breakeven stop-loss. The goal is to avoid losses, not necessarily to make profits.

Based on analysis, what is the best solution to unlock?

1. For positions with poor entry points, slightly profit near the entry price (wait for the dip, as dips are inevitable), then close and run, restoring your freedom.
It’s also acceptable to not profit, just take a small loss to exit. Proper stop-loss is to better preserve the principal; capital preservation is more important than profit.
Actually, when opening a position, the first consideration is not how much you can earn but how much loss you can accept. First, consider the acceptable loss, then focus on capital preservation, and finally on profit. (Prioritizing capital preservation over profit.)
Of course, the premise is to dare to try and make mistakes. Without trying, there’s no subsequent opportunity. No losses or profits.

2. Any light position can be topped up at key levels, adding three times the position to average down, then slightly profit or reduce at the entry price, or just run away.

3. Not recommended but still an option: Increase margin, average down at key levels, then repeat the optimal solution—run near the entry price.

Another point: There is never a perfect position, only relatively good ones. There is no best, only relatively good.
Dare to try with light positions to make mistakes; only then can you have future opportunities. Without trying, there’s nothing.

4. Extreme case unlocking strategy: If about to be liquidated, what to do? Quickly lock the position to preserve capital.
Open a hedge in the opposite direction: open a position with 50% of the margin in the opposite direction, and set a breakeven stop-loss after profits to prevent floating losses and needing to unlock again.

Important notes:
1. When hedging and locking positions, do not set any stop-loss or take-profit orders, as the system will automatically execute them, potentially causing liquidation. Manual unlocking is required.
2. Do not place too many orders; limit to 1-2 orders.
3. Try to focus on only one coin to prevent liquidation in extreme market conditions.