THREAD - 2
“How to exit any trade?”
In last 4 months, finding a stock and entering into that is no big deal... Every single person can suggest many stocks to enter.. But the biggest problem which they face is - EXIT
Lets discuss the ways to exit -
“How to exit any trade?”
In last 4 months, finding a stock and entering into that is no big deal... Every single person can suggest many stocks to enter.. But the biggest problem which they face is - EXIT
Lets discuss the ways to exit -
1. One popular trader said -“ Entry is a choice but exits are mandatory “
And your overall performance depends mostly on your exit strategy.
In any public places (Movie hall, Auditorium) , EXIT signs are in big letter for a reason..
And your overall performance depends mostly on your exit strategy.
In any public places (Movie hall, Auditorium) , EXIT signs are in big letter for a reason..
2. You should have a clear rule of entering and exiting any stock before entering any trade. Most people enter the trade in FOMO but they don’t know when to exit?
In Mahabharata, Abhimanyu did the same mistake and you know the result.
In Mahabharata, Abhimanyu did the same mistake and you know the result.
3. In RS, As we follow a line which we call “Lakshman Rekha” which is 0 line .. Credit goes to @premalparekh Sir for this name..and for his strategy..
That single line can be used for Entry as well as Exit...He has explained that in simple manner..
That single line can be used for Entry as well as Exit...He has explained that in simple manner..
4. But lets discuss some other ways also..
a. You can exit a stock if its swing low has been broken.. This concept comes from HH, HL, LH and LL thing..Follow this and you can exit a stock once its swing low is broken..
a. You can exit a stock if its swing low has been broken.. This concept comes from HH, HL, LH and LL thing..Follow this and you can exit a stock once its swing low is broken..
b. You can keep a Moving Average ( lets assume 50MA) , and fix a rule that you will exit once that MA is broken..
Because if 50DMA is not holding, that clearly means stock is showing weakness..
Because if 50DMA is not holding, that clearly means stock is showing weakness..
C. Mark a Strong support zone on the graph (it can be on Weekly, Daily) ..It all depends on you how aggressive you are?
Exit it if that strong support zone is broken..
See..we will only exit a stock once its start showing some weakness.
Exit it if that strong support zone is broken..
See..we will only exit a stock once its start showing some weakness.
5. Most of the stock goes through Distribution Phase before dumping hard...Keep an close eye on those area..Look for seller volume..Look for the candlesticks and you will get it..
There is no use of exiting a stock if it has momentum..
There is no use of exiting a stock if it has momentum..
6. Above all rules are to be followed if you are a aggressive trader and if you believe in Momentum.. If you are a positional Trader..better stick to Rule of RS which has been told by @premalparekh Sir..and you can add HH , HL, LH and LL concept to that.
7. See.. There are many ways to do anything..You need to choose one style which works for you..
In other words,
There are many ways to exit..Find one which is easy for you..and stick to that..
ENDs.
#RSWarriors
In other words,
There are many ways to exit..Find one which is easy for you..and stick to that..
ENDs.
#RSWarriors
