How to relieve worries. Only by solving the problem

Losing a position is not scary; what’s scary is handling it the wrong way

1. Shallow Loss (not much loss)
If the market is volatile, wait for the price to rebound close to your cost basis, then sell part of your position. Don’t try to recover everything at once; reduce your risk first. If it’s confirmed to be a one-sided decline, be decisive—cut your losses and exit. Dragging it out will only deepen the loss.

2. Deep Loss (more significant loss)
First, cut your position in half to protect your capital. Remember: the more it falls, the more you add—this is the easiest way to get liquidated. Once the price stops making new lows and begins to stabilize, use small positions to buy low and sell high, gradually offsetting your original losses and lowering your average cost. If the trend continues to weaken and shows no signs of recovery, don’t hold on stubbornly—accept the loss, close your position, and save some bullets for the next opportunity.

3. Locked-in Loss (long and short positions)
First, identify which side is losing more, and prioritize closing that position to stop the bleeding. Don’t let both sides bleed simultaneously. After unlocking, avoid locking positions randomly. Follow the current trend with small trades, using the profits from new trades to fill the gaps of old positions.

4. The Ironclad Rule You Must Follow
Don’t hold on stubbornly, don’t be greedy with your position size. Use no more than one-third of your usual capital. Avoid frequent trading—fees are often more than you think. Always set stop-losses; exit when the time comes. Don’t gamble on luck.

Summary in one sentence:
Stay alive first, then talk about turning things around.
The market will always be there; if your capital is gone, the opportunity is gone.