1. Once a trend is established, it will not easily change.
Many people are tormented by the great bear market and have developed deep-rooted bear market thinking, always wanting to secure small profits. This is the most terrifying.
Don’t try to predict; learn to follow trends. In a bull market, the worst thing is having no position and watching others make money. Missing out can easily distort your mindset, leading you to recklessly jump in at the top and get trapped.
In the stock industry, you don’t open for three years, but when you do, you eat for three years. If you don't eat meat this year, how will you get through the next few years of porridge? Without you eating meat, you'll get hit while you’re all in, so how can you talk about making money from investments?
2. Stay away from weak sectors.
In the great bull market of 2015, CITIC Securities' stock price peaked on January 7, 2015, and has not reached a new high since. You have to know that after January 7, 2015, many ChiNext stocks had four to five times the increase. If you held on to brokerages, how much did you miss?
I had a friend back then who saw a significant rise in brokerage stocks in the fourth quarter of 2014, heard others say that brokerages would definitely have a market in a bull market, and finally jumped in in January 2015, but couldn’t sell.
Almost missed the entire bull market of 2015.
There are many similar lessons. The characteristic of a bull market is that the stronger the sector, the easier it is to rise; the strong continue to get stronger.
When selecting stocks in a bull market, it’s best to focus on weekly charts and choose those that are at a historical three-year high. Such stocks often represent the direction of mainstream capital and are the breaking point of sentiment.
3. Add positions on breakouts.
In a volatile market, breakout buying can easily backfire, as stock prices fluctuate; when they rise too much, they will fall. However, in a bull market, the success rate of breakout buying is high, and the efficiency of making money is also higher.
Be careful to set stop losses; otherwise, if you buy incorrectly, you'll be stuck.
In a bull market, you don't fear making a wrong purchase; what you fear is holding on to your mistakes and wasting time on the wrong targets, missing countless opportunities.
4. Be sure to have a profit-taking plan.
In a bull market, even fools can make money, but those who can safely take their money away are few. A round of revelry always needs someone to foot the bill.
Taking profit is also simple; find a hard-to-break moving average, and if it breaks, exit and re-enter on a new high.
For example, the ChiNext Index in 2015 rose very sharply. Using moving averages to take profit is most suitable for such a sharp upward trend, making it easy to find a hard-to-break moving average, and if it breaks, exit unconditionally.
Be sure to remain calm and patient.
Don’t let the market’s frenzied atmosphere cloud your judgment; refuse to blindly follow trends. Keep learning and deeply researching, staying updated on market dynamics, industry development trends, and the fundamentals of companies, continuously improving your investment abilities.