I think it varies from person to person. I’m actually trying to learn this too, as I think I have reached the same stage. 
Seeing Vivid HI.
Some people step into the dream, others do nothing until they enter the dream, some try to keep a thought in a separate part of their mind.
And I think there are probably other things people do. I think the only way you can find the one that works for you is to try different ideas. I also think the different WILD based techniques are worth reading. They’s an interesting page in the knowledge base that contains links to information about them under WILD Variants.
Here
BTW about the red stars, it sounds like HI to me. I used to get swirling colours after a short time of closing my eyes. I think it’s normal. 