In the early hours, fan Xiaokai brought good news—SHIB has been unlocked, and he made an additional 30% profit.

This is not just a simple turnaround story. He bought in at the peak of the bull market at a price of 0.00008U, and watched the price drop to 0.00002U, with an unrealized loss exceeding 70%. During that time, people around him advised him to cut losses, but he didn’t. Later, he relied on a systematic position management method to step by step work his way out.

This made me think of a phenomenon: after being trapped, most people either choose to lie flat, using time to digest the losses, or impatiently cut their losses, turning unrealized losses into real ones. But the difference between experts and ordinary investors often isn’t about whether they can accurately catch the bottom, but how they break the deadlock after being trapped.

The method Xiaokai used, I call it the "Stepwise Untrapping System." Its core is not betting on a rebound, but actively managing positions to turn a passive situation into an active layout—protecting principal, reducing costs, and ultimately unlocking profits.

**Step 1: Emotional Isolation, Clarify Your Thinking**

The first reaction when trapped is the most dangerous. Xiaokai’s approach was to turn off the software and stay calm for three days. Not to escape, but to prevent himself from being drained by the continuous shrinkage of numbers. After three days, he diagnosed: Has the fundamentals of SHIB deteriorated? Is the team reliable? Is there progress in the ecosystem? Confirming that the fundamentals are still intact, he decided to hold on.

This step sounds simple, but many people can’t do it. Emotions can cause you to make the worst decisions at the worst times.

**Step 2: Prepare a Reserve Team, Don’t Blindly Add Positions**

What is the most common mistake during a decline? Over-adding to positions. Buying more when the price drops a little, buying even more as it falls further, leading to higher average costs. Xiaokai’s approach was to set aside 30%-50% of the trapped position’s idle funds into a separate stablecoin wallet as a "reserve team." Only use it at critical points, not to act impulsively.

The benefit of this is discipline—avoiding greed triggered by market fluctuations.

**Step 3: Gradual Replenishment, Dilute Costs**

With a reserve team in place, clear rules for adding positions are necessary. Xiaokai’s standard is: only add when the price hits a support level and the downtrend begins to weaken. Specifically—when the price drops 40%-50% from the high, add 20% of the total position; when it drops 60%-70% and consolidates sideways for over a week, add 30%; look for reversal signals to add another 30%, leaving 20% as an emergency reserve.

Each addition has a stop-loss of 5%-8%, ensuring quick exit if the judgment is wrong. Over time, this gradually lowers the average cost.

**Step 4: Swing Trading, Actively Lower Costs**

During bottom oscillations, SHIB fluctuates within a range. Xiaokai didn’t wait passively but used 10% of the reserve team to buy low and sell high. Selling at the upper end of the range, buying back at the lower end. After each profit, he didn’t hold everything but rotated into other assets, repeating the process with profits.

It sounds complicated, but the core logic is: during waiting periods, actively generate income to lower the overall holding costs.

**Step 5: Set Milestones, Combine Offense and Defense**

How to sell after a full recovery from the bottom? Xiaokai’s method is to set milestones. When the price returns to cost basis, sell 20%-30% to recover the principal, reducing psychological pressure significantly. Then, hold the remaining position, and when profits reach 10%, sell another 30% to lock in gains. The remaining position is set with a 15% trailing stop-loss, preventing missing out on subsequent moves and limiting risk.

**Starting from the SHIB Case**

Xiaokai’s entire process took about seven months. Bought at 0.00008U, the lowest dropped to 0.00002U, and now he’s unlocked with a 30% profit. This isn’t luck; it’s a systematic risk management approach.

Markets fluctuate daily, and crypto cycles repeat. Whether you can stand firm often depends not on how accurate your vision is, but on whether you have a set of rules to respond when the situation turns against you. Protect your principal, stay true to your original intention, and in the next cycle, you can also earn back.