@Mudit.Kushalvardhan This was discussed previously.
I like to remain in cash all the time (through ups and downs). However, there were several people in the forum who had this concerns of markets falling. At that time, I had suggested we could like at the respective index and see if it we correlate our actions with that.
I started with 50 and 200DMA and then couple of weeks later, switched to 50 and 200EMA as this gives more importance to recent data.
To answer your question, if 50EMA falls below 200EMA, we could look at shifting part of the pf (whatever be the %) to cash or gold. Easiest changes could be to Liquidbees (or Liquidcase) and Goldbees.
Keep the same status till 50EMA makes a definitive move above 200EMA.
However, if 50 EMA continues to remain under 200EMA for subsequent weeks, we could move the entire pf to cash or gold.
Return to investing once 50EMA goes well above 200EMA.
This was a thought process. I guess we can improve upon this based on the comfort level of every individual.
| Subscribe To Our Free Newsletter |
