1. Take a Step Back
Don’t let green candles lure you into hasty decisions. A temporary price surge is not a guaranteed recovery. Allow the market to stabilize and look for clear signs of sustained upward momentum.
2. Analyze the Bigger Picture
Zoom out and study broader market trends. Is the rally supported by solid fundamentals or positive developments? Or is it simply a speculative rebound? Understanding the context can help you make informed choices.
3. Stick to Your Plan
Trading requires discipline and a clear strategy. Define your entry, exit, and stop-loss points in advance. If the market doesn’t meet your criteria, resist the urge to act impulsively.
4. Buy the Dip—But Wisely
Buying the dip can be a profitable strategy if executed correctly. Wait for signs of stability and ensure the recovery is supported by solid fundamentals before entering the market. Avoid buying during spe
culative surges.