Market Events

Gap ups

If stock that is about to breakout, breakout with gap up then just wait for first few min and let stock make it's first base on smaller time frame
Most time stock will gap up in pre market and then some selling will happen, then it will again start moving up breaking open price then you can enter, with day's low as SL

Most gap downs is going to happen due to some negative news like bad earnings, change in gov policy
For earnign just never hold anything going through earnings
For other reasons just sell on smaller time frame

When there's major change in market expections black swan event will happen
Most of time it's negative news
Some examples of black swan events in past few years
- Global pandemic like covid 2020
- War Russia-Ukraine war, iran-isrel , isrel-hamas
- Major Shift in National Government, Lok sabha election 2024, BJP didn't got majority
- Major economical bubble like Housing market bubble, IT companies bubble
If you're in cash
- can buy good companies in uptrend with good relative strength for short term hold
- Focus on companies which is still above 10/21 day with low volume selling
- If you really have high conviction on company then only buy it on same day otherwise buy it on next day rebounce
- only buy 1-2 positions and watch it like hawk
If you're invested
- Just start booking profits and move to cash, don't wait for market close

Market crash is going to happen when there is some major negative news like war, recession, pandemic
In market crash just stay away from market and wait for few days to see how market is reacting
If you're already invested then just make decision based on your risk appetite
- Sell if you're sure that market is going to crash more and things are going to get worse
- Hold if you're not sure or you think that market is going to recover soon in next few days