- Buy the deepest dips into oversold territory. Indexes tend to snap back to the previous days low, the 5 day ema, 200 day sma, and the 30 RSI.
- Sell the rallies back into resistance. The short term resistance can be the high of the day, a rally back to green, and eventually the 200 day SMA.
- Trade small; half your regular size or less.
- Trade shorter time frames. Profits go as quickly as they come; take them while you have them.
- Stop trying to hold stocks, and buy strength and start to sell momentum short.
- Start trading inverse ETFs.
- Go to cash in your retirement accounts until the 200 day is recovered.
- Buy put options as much as you buy calls.
- Don’t be an investor, be a trader.
- Don’t marry any stock during market corrections.
- Day trading is where the quick trends will be.
- Long Term trend following on the short side is a way to avoid the quick intra-day trends, price noise, and stress.
10 Tips for Trading a Downtrend
