A bull market is rare and valuable, usually occurring only once every few years. Once a bull market arrives, it will be a great opportunity for investment. There is actually a strange phenomenon: although it is easier to operate a bullish bull market compared to a bear market, there are still so many people who are prone to short selling. So, how to choose stocks when a bull market comes?
1. Pursuing price strategy
When the stock market shows an upward trend, a certain sector or variety will become the market leader with significant upward potential. When the first batch of sharp investors in the market intervened in the stock, there was a situation of first short selling, opening high, and moving high, and the trading volume began to significantly increase. This is the best time to catch up. According to the pattern discovered by senior investors, when a stock is consolidating in a certain price range for a long time and the trading volume is abnormally high, the stock is likely to be of interest to market makers.
2. Follow the Zhuang strategy
Market makers are an important investment group in the stock market, influencing the fluctuations of stock prices. When individual investors choose stocks that are favored by market makers and institutions, they first need to see the overall trend, weigh the weight of the stock theme, and then decide whether to follow the market. If the fundamentals are good and the stock theme is unique, when the trading volume significantly increases and the price starts to rise, it can decisively follow the trend.
The timing for following the trend should be chosen when the stock price has been consolidating at a low level for a long time and suddenly breaks through the previous high point.
3. Buying strategy
In a bull market, stock prices generally follow a trend of upward, downward, and upward movement. When falling, actively buying sets can not only avoid the risk of buying at high prices, but also leave a large profit margin for future increases. Therefore, when there is a pullback, one should bravely buy sets. In a bull market, actively buying a hedge is only temporary and often only a temporary trap. With the rise of stock prices, not only can the hedge be resolved smoothly, but profits can also be easily made.
4. Stock Swap Strategy
The stock swap strategy is an investment strategy that involves liquidating the stocks that have already risen during the process of stock price rotation, and then purchasing stocks with smaller or not yet rising gains. In a bull market, various stocks often experience a cycle of rising stock prices. If investors can grasp the rhythm of the market and constantly switch between various stocks, that is, constantly sell stocks with significant price increases to free up funds to purchase stocks with low prices that are about to rise, they can continuously profit during the cyclical rise of the stock market.
5. Warehouse defense strategy
Holding a position refers to not paying attention to short-term stock price fluctuations and holding shares for a long time without selling, only taking them into account when the stock price reaches a final profit. This is an important way to profit in a bull market. But holding positions can only be chosen when it is at an appropriate low level and confirms that the stock market has entered an upward period. If investors still hold their positions when the stock price is at a high level, they will miss out on a profitable opportunity.