200 Day Simple Moving Average

For a secure investment it is important to have a well diversified portfolio

With a good weighting of the different assets you will be able to achieve a return that is more than correct and secure

Nevertheless, it can be interesting sometimes, to take a little more risk, and invest on individual stock ​​when you have a strong bullish conviction.

A rather reliable method is to use the 200-day moving average as a benchmark

This technique was mentioned in the book Money, master the game of Tony Robbins,

it is used by Paul Tudor Jones, one of the largest trader and hedge fund manager.

THE PROCESS IS VERY SIMPLE,

you have to be on position only when the price is above this

moving average

(5% is a good entry point to avoid false signals)

and cut the position when the price is below

(5% below is a good exit point too).

Sample with ETF SPY