“You gotta know when to hold’em, know when to fold’em, know when to walk away, know when to run.” -Kenny rogers

Now every gambler knows the secret to surviving is knowing what to throw away and knowing what to keep.

Regardless of whether I’m calling myself a trader, investor, or a gambler, I need to know when do I Hold’em and when do I Fold’em in the market.


Stock’s prices goes up and down and they move in trend. The problem is when that stock is moving up for months, people often sees that stock in a optimistic manner regardless of who they are. When the price of the stock starts moving down for months, people often find reasons to blame on literally anything.

But one thing for sure is, the mass people will never care on the opinions you suggested nor the blames you throw onto because the chips(money) you invested in this stock belongs to you NOT theirs.

Hence if the stock market is a place where profits and losses are generated then, we have to accept the fact that losses is part of the game. Question is how much losses are you willing to hold onto?

When I started investing/trading in the stock market at my early years, the hardest part is always knowing when to Fold’em in the market. The expression of hope, greed, depression to keep us holding onto a losing stock is just simply plain wastage of time when we recalled back those moments.


#1 EMA200days is always my Last Price Support

  1. Price breaks below EMA200days = I start to make a judgement call to EXIT all my chips in the market.
  2. What if it rebounds after I EXIT? Then let it be evidently proven first that the price did indeed rebound and form a desired entry point of yours and THEN you make your buy judgement call. Else hope is just implied into your mindset.
  3. What happens if I’m still holding onto a stock’s price below EMA200days? EXIT AT ALL COST is what you wish to do because the first thing that will happen to you after you exited your stock = your have a big sense of relief mentally which is IMPORTANT.
  4. Will that fallen stock ever come back alive? Then let it be evidently proven to you by its price for you to make that judgement in the near future.


#2 How do I execute my 1st & 2nd Exit Plan?

  1. What goes up will goes down and vice versa. At times how do we keep our self rational enough to constantly remind our self daily to never chase a high flying stock. Ofcourse we can have 10 different people defining 10 different meaning of a high flying stock. But I’d just go simple by implying my EMA30days being my 1st Exit Plan, EMA90days being my 2nd Exit Plan, and EMA200days being my 3rd and FINAL Exit Plan.
  2. Now you have 3 exits plan waiting for you. If you are not willing to go for your 1st Exit Plan then you may need to face your 2nd Exit Plan. If you failed to execute your 2nd Exit Plan, and the market price triggered your 3rd Exit Plan but you are still not executing your Exit Plan THEN the stock market is never wrong. But Human always failed at making their executions part.


1st Exit Plan Triggered



On the bright side


  1. Observe stocks that their prices rebound to support. Means they did not break below their EMA200days support and goes lower low.
  2. Spot it and wait for their price action to form for you to set up an entry point.
  3. Lastly always remember when to Fold’em when things goes wrong.


How does EMA200days works?



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William Au

10 Years Position Equities Trader

Founder of

Chief Equities of TFM