📈 Buy Rules: How to Enter Like a Pro
Breaking down the essential buy rules every trader and investor should follow to succeed in the stock market.
Two golden rules:
Never buy randomly.
Never go full position in one go.
We focus only on high-probability stocks that meet our selection criteria and chart setups. Progressive exposure helps manage risk while capturing upside.
✅ What We Look For in Setups:
Strong bases & patterns (Cup with Handle, Flat Base, VCP, etc.)
Signs of accumulation (tight ranges, higher lows)
Key resistance levels – location and age matter
Volume spikes – especially during breakouts (signals institutional interest)
🎯 Entry Methods
1. Pyramid Approach (Ideal for intermediate to advanced traders)
Initial buy: Enter on a wide-range candle with strong volume, forming a valid pattern (weekly timeframe).
Add on pullbacks: Use the 20DMA pullback rule – only add if your position is in profit.
Scale in: Add on new valid bases as price trends higher.
2. STP Approach – Simple, Time-based, Progressive (Great for beginners)
Divide your desired position into 4 equal parts
Add one part every week if:
Price continues to rise
Your average cost stays positive
Avoid buying:
Close to earnings
Stocks that are extended (late-stage bases)
✅ Key Buy Rules
1. Only Buy in a Confirmed Uptrend
Follow the market trend model — it must be green.
Advanced traders can take test positions on rally days.
2. Buy Close to the Breakout Point
Buy at market once the breakout is confirmed on Weekly candle.
Volume is key — strong action on the breakout day signals institutional interest.
3. Position Sizing Strategy (for 7.5%–15% total allocation)
75% at breakout
25% using pullback entry post breakout.
4. Stop Loss Discipline
Place a stop loss about 10% below your entry point.
Adjust based on chart structure and support zones.
5. Avoid Chasing Extended Moves
Do not buy if the stock is more than 15% above the support zone.
Wait for a new base or consolidation before re-entering.
6. Add Only on Strength
Add only if:
Your position is +20% in profit
The stock has consolidated for at least 3 weeks
A fresh breakout occurs
Limit adds to 10–20% of the current position size.