Market Entry Exit

For General/Small Traders 

Perfect time for Traders to to get entry 

This simple rule will help the General / Small Traders to be happy in trading. 

A. Market Entry:

1. If index goes above MA 200 and 

2. If index goes above MA 20.  

B. Market Exit:

1. If index goes below MA 20 :  Close Position.  

2. If index goes below MA 200:  Stay Away. 

Trading against the Trend is just like swimming against the Flood. 

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For Professional Traders 

Be professional in trading. 

Learn the serious game before you play. 

[The ugly truth of the market] 

A. Market Exit: 

When index is below EMA9/MA12:  Exit 50% of what you have [except beta negative items].

When index is below MA 20:  Exit full/quit all position. 

When index goes below MA50: Stay away from market, go for vacation. 

If index goes below MA200: Don't buy. It's time for Research & Development. 

We use MA because it works as dynamic trend filter both for short term & long term. 

Question may be WHY ? 

When index is below MA20: This is general [exception can not be generalized].

1. Breakout will fail in many cases, 

2. Patterns will break downwards in many cases, 

3. Swing failure will occur in many cases, 

4. Support will be broken down in many cases. 

5. Short term trend will reverse in many cases. 

When index is below MA50: This is general [exception can not be generalized].

1. Breakout will fail in most cases, 

2. Patterns will break downwards in most cases, 

3. Swing failure will occur in most cases, 

4. Support will be broken down in most cases.  

5. Short term trend will reverse in most cases. 

B. Market Entry:

1. If index is above EMA9,  MA12,  MA20 & MA 200 

2. If EMA9>  MA12>  MA20>  MA 200 

Individual stock selection:

If you are a Trend trader: Search the stocks which are ready for trend swing. 

If you are a Pattern trader: Search the pattern which are ready for breakout. 

Also check the Support/Resistance, confluence etc. 

C. Must follow: 

1. Stop Loss

2. Take Profit 

3. Money Management etc.

Buying any stock bellow SMA 200 is just like swimming against the Flood/ Stream/ Trend. Saving equity is better than loosing money. 

However, keep keen eye on index to comply exit rule when you are in trade.