Don’t Fight A Bull TrapA bull trap occurs when you get a bullish signal on a stock only to watch that stock fall further and further down. When a situation like this happens it is important to remember not to fight it. Don’t put more money into a losing position trying to force it to go back up, (unless you have several billions of dollars of play money of course.) 
So, what do you do when you’re caught in the middle of a trap? The most important thing to do is to cut your losses short. The smaller your losses are when you are wrong the less they will affect your account. That is why it is considered a buy signal when a stock is at support. If a stock breaks support it is likely that it will continue to go lower and it is time to get out of that position. In other words by buying at support or close to it you can easily exit with a small loss if the stock breaks lower, and let it run if it continues to go up and make higher highs. It is impossible to predict exactly what will happen next, regardless of what method you use. So reacting and preparing for all possible situations is essential to making a decent return. Return From Don’t Fight A Bull Trap to stock tips
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