I hope this is not an overdose of what to do in a bull market…and I hope that the market remains bullish till it reaches 100,000 on the sensex or at least 36,000 as touted by another media expert. I do not believe both these figures, but then I am a cynic, ain’t I ?

Here are some more tips on how to invest in a bull market:

1. Be prepared for a bull run: Most people want a bull run, but panic on the first signs of a bull run! Imagine if you were in the market at 2800 index. Would you have been thrilled about DOUBLING your money and bailed out at 6000? and watched the market go to 21000?

Similarly if you have been in the markets from the beginning of say 2013 or even Dec 2013, what will you do? After all 21k has changed to 28k! What happens if you sell out at 32k and then the market reaches 43k in 2 years time?

2. NOBODY KNOWS anybody who knows anybody who can time the market perfectly every time: Such a guy would have a portfolio far, far better than Warren Buffett and we know he is lionised, is he not?

3. What the market does is NOT AT ALL IMPORTANT – see what YOUR portfolio is doing. Significantly see how the individual scrips in your portfolio are behaving, not the aggregate. Aggregates do not matter….

4. Be very careful about your Asset Allocation: If you have decided that you should be in equities only to the extent of 55%, STICK TO THAT figure IMMATERIAL of whether the market is in a bull market or bear market. YOU WILL HAVE TO SELL EQUITIES and buy bonds in a bull market. You know your numbers, right?

5. There are many phases in a bull market – your portfolio has to have that strategic tweak – whether to buy Mid caps, large caps or even cash. Understand carefully, the stages of a bull market are not easy to spot.

6. When you have money, keep buying – we are investors we invest. In a rising bull market this can look sensible. In a falling market it can look stupid, so be alert.

7. When everybody is bullish on certain idea – it might be a good idea to take some money off the table…hey control your fear, greed, regret and pride….again your call.

8. Meditation helps. Do remember in a bull market, you attract (law of attraction) bullish stories (Confirmatory bias) so discount what you like and seek the nay sayers. Talk to them, read what the leftists have to say. Close your eyes and think ‘what if Mamta were to be the deputy PM….hmm…come down to earth…

More tips?

arre implement this first….

 

 

 

 

 

 

  1. Bull market makes you track the markets much more frequently than it was in a bear market…. actually it should have been the reverse and financially healthy, especially you are still generating investable surpluses.

  2. Subraji,

    Could you write about “5. There are many phases in a bull market – your portfolio has to have that strategic tweak – whether to buy Mid caps, large caps or even cash. Understand carefully, the stages of a bull market are not easy to spot.” in an upcoming post? Thanks much!

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