Maximising returns during a bull run. What you need to know!

In the world of trading and investing, it is said that there is no top for the bull market and there is no bottom to the bear market. When the stock market experiences a bull run and reaches new heights, it can be both exhilarating and nerve-wracking for investors. Bull markets often trigger a wave of optimism, with prices rising, confidence soaring, and the fear of missing out (FOMO) creeping in.

Stick to your long-term plan

In reality, investing is often a boring process, and that’s a good thing. The most successful investors typically follow a disciplined, long-term approach rather than trying to make investing exciting with constant buying and selling. As Charlie Munger said, ‘The big money is not in the buying and selling but in the waiting.’ Frequent trading, or “churning,” might seem tempting, especially during a bull market when everyone appears to be making fast money. So, stay consistent, remain patient, and let your investments work for you over time.

A few points to remember:

• Stay focused
• Stick to your strategy
• Avoid churning
• Let compounding work

Secure your initial investment

If a stock in your portfolio has risen over 100%, consider withdrawing an amount equal to your original investment while leaving the profits to continue growing. By securing your initial capital, you protect against downside risk, ensuring that any further gains come without risking your original investment. This strategy allows you to remain in the market and participate in potential future appreciation, while also reducing the emotional stress of a potential downturn.

A few points to remember:

• Secure initial capital
• Let profits grow
• Balance risk and reward
• Stay disciplined

Reinvest in Right stocks

Even during a bull run, it’s essential to keep deploying your funds into stocks that are having potential to deliver give you good returns though wealth building. Plus, research and find undervalued or emerging stocks with the potential for significant growth. Make a balance portfolio of Multibagger Stocks, Penny Stocks and Value Pick Stocks. This strategy ensures that you don’t miss opportunities, diversifies your portfolio, and positions you for future gains beyond the current market peak. Building portfolio requires great stocks + In-depth knowledge which requires masters of the field so if you trust your skills you can handle yourself or handover the work to expert stock advisory. 

A few points to remember:

• Seek companies with strong earnings
• Look for undervalued opportunities
• Stay diversified
• Diversify wisely

At ABJ Finstocks, we’re dedicated to identifying potential high-performers every month to help you build long-term wealth. If you keep investing in the right stocks at the right time, you can achieve solid returns, even in a falling market. So do not try to judge the market highs and lows, focus on consistently seizing opportunities in promising stocks and let the rising market work in your favour.