Why A Bull Run In The Stock Market Is The Time To Take Profits
A bull market is when the economy is doing fabulous, jobs are easy to find, and the gross domestic product is growing. Stock are going up and everything is peachy! That why a bull run in the stock market is the time to take profits higher. A bull market makes picking stocks very easy with everything is on the rise you just can't go wrong.
But remember that bull market cannot last a lifetime which is why a bull run in the stock market is the time to take profits higher. Eventually it will turn around and suddenly you will be in a bear market. A bull market is forging ahead strongly can become dangerous with overvalued stock.
Bull markets are about optimism which is why a bull run in the stock market is the time to take profits higher. It's an exciting time for an investor with rising indexes stock values go up which is why a bull run in the stock market is the time to take profits to a new level. Practice will make you a great player in no time.
If you aren't familiar with options it's a way for a small investment to become big. When you purchase a call option you buy the right to purchase the stock from the call seller at a named price and by a specified date.
On a bull run you never actually buy the stock but instead sell it to another investor for more than you paid for it before the expiration. That's why a bull run in the stock market is the time to take profits to a new level.
You can sell your call option to anyone who is wants to exercise it. You can then sell your call for at least $20 more right now and if you hang on in the bull market you are likely to be able to get even more which is why a bull run in the stock market is the time to take profits higher.
That's just one example of why a bull run in the stock market is the time to take profits to a new level. You can quickly see how easy it is. Only one word of advice ' always have your exit strategy planned.
Now that you know why a bull run in the stock market is the time to take profits home what are you waiting for?
Copyright ' 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)