3.19 Gold Long Position 5000-4900 How to Recover from Loss

Being trapped in a trade is an experience many traders have had, but it's also the experience they least want to happen. Being trapped is painful, and no matter how you operate, traders are in a passive state. I believe that many gold investors today are either blown out or deeply trapped in losses. If you don't know what to do, take a look at the simple plan that Ye Youyuan has customized for everyone as a reference.

1. Recover from losses based on position size. If the trapped position is not very large, you can choose to reduce positions appropriately when prices strengthen, or directly use a rebound opportunity to close out and recover from losses. If the trapped position is relatively large, you can appropriately reduce positions on rallies, free up excess capital and wait to seize the initiative in the next rebound.

2. Recover from losses based on price trends. If the trapped position is currently in an uptrend, investors only need to wait until the price rises to a certain level and will automatically recover from losses. If the current price is in a consolidation range, at this time if the investor's losses are not significant when exiting, they should decisively close out and recover. If the current price is in a downtrend, regardless of whether the position is large or small, you should decisively exit, otherwise you will only trap yourself deeper.

3. Recover from losses based on entry price. If the trapped position was bought at a relatively high price, don't hesitate, immediately stop loss and exit. If the trapped position was bought at a mid-range price, you can temporarily observe and judge how the price will move in the future, find opportunities to reduce positions on rallies, or directly close out and recover. If the trapped position was entered at a relatively low price, there's no need to rush to stop loss and exit, because at this point the price is likely to reverse. Investors should close out and recover when the price reverses, or directly add to the position for profit.

4. The above ideas are for reference only. The specific operational process requires entry points and position risk to formulate a reasonable loss recovery plan.