3 Simple but Powerful Rules for Trading Climactic Plays

In the stock market, what seems low often goes lower, and what seems high tends to go even higher.

However, most traders can’t resist a good bargain. The temptation to buy a falling stock is usually exasperated by the fact that falling stocks occasionally have notable bounces, perhaps on high volume, giving the impression that the stock has bottomed.

However, once the short covering subsides, more selling typically follows and the stock falls further, hurting those who most recently bought the stock. 

So if you want to trade these plays, you must learn the rules!