1. Do not rush into the event.
Keep an eye out for signs that the rebound is strong, such as higher highs and lower lows.
2. Use stop-loss.
A rebound can fail. Always safeguard your capital in case the market falls once more.
3. Follow the trend.
The rebound may be brief if the larger trend remains downward.
4. Manage your risk.
Never put too much money at risk with one trade. Instead of focusing on one big win, smart traders focus on consistency. 5. Control emotions.
Greed and fear can lead to poor choices. Stick to your strategy.