# Unwinding a Position Doesn't Have to Be Complicated — Here's What Works
Get the method right and you're halfway there. Let me share the insights I've picked up over the years.
**Decisive stop-loss is your first line of defense** When a coin you're bullish on suddenly breaks below a key support level and daily chart bearish signals are crystal clear, don't fool yourself into hoping for a bounce. Once losses exceed 15%-20%, you need to exit decisively on any rebound — that's how you avoid getting buried deeper. Too many people can't bear to cut losses, watching a 20% loss balloon into 50%. That's a mistake you can't afford.
**Use wave trading to average down during range-bound action** If you're only slightly underwater (≤10%) and the coin is still consolidating, this is your moment to lower your average cost. Sell a portion at resistance, then buy back at support (keep the add-on to no more than 50% of your original position). By patiently scaling in and out, you'll inch that average cost down — much more reliable than taking a big loss and chasing rallies.
**Position rotation: the fast track to freeing up capital** Your current holdings aren't performing? Sell 50% and rotate into a coin that's currently strong, take those gains, then rotate back when you've covered losses. This works especially well when the overall market is decent but individual coins are lagging. Essentially, you're using profits from strong performers to offset weak ones.
**Three traps you must avoid** Don't hold stubbornly — sticking with the wrong trade only digs the hole deeper. Don't add blindly — unplanned averaging down is gambling. Don't chase or panic sell — that's the fastest way to lock in losses.
One last thing: getting stuck in a position is as normal in trading as catching a cold. What matters isn't whether you've been stuck before, but how you handle it when you are. Stay calm, prioritize capital preservation, and every successful unwinding becomes experience in your trading toolkit.
# Unwinding a Position Doesn't Have to Be Complicated — Here's What Works
Get the method right and you're halfway there. Let me share the insights I've picked up over the years.
**Decisive stop-loss is your first line of defense**
When a coin you're bullish on suddenly breaks below a key support level and daily chart bearish signals are crystal clear, don't fool yourself into hoping for a bounce. Once losses exceed 15%-20%, you need to exit decisively on any rebound — that's how you avoid getting buried deeper. Too many people can't bear to cut losses, watching a 20% loss balloon into 50%. That's a mistake you can't afford.
**Use wave trading to average down during range-bound action**
If you're only slightly underwater (≤10%) and the coin is still consolidating, this is your moment to lower your average cost. Sell a portion at resistance, then buy back at support (keep the add-on to no more than 50% of your original position). By patiently scaling in and out, you'll inch that average cost down — much more reliable than taking a big loss and chasing rallies.
**Position rotation: the fast track to freeing up capital**
Your current holdings aren't performing? Sell 50% and rotate into a coin that's currently strong, take those gains, then rotate back when you've covered losses. This works especially well when the overall market is decent but individual coins are lagging. Essentially, you're using profits from strong performers to offset weak ones.
**Three traps you must avoid**
Don't hold stubbornly — sticking with the wrong trade only digs the hole deeper. Don't add blindly — unplanned averaging down is gambling. Don't chase or panic sell — that's the fastest way to lock in losses.
One last thing: getting stuck in a position is as normal in trading as catching a cold. What matters isn't whether you've been stuck before, but how you handle it when you are. Stay calm, prioritize capital preservation, and every successful unwinding becomes experience in your trading toolkit.