43351484088 How to Safely Navigate a Bull Market?

Generally speaking, a bull market can be divided into several different stages, each with its unique characteristics. Below are my understandings of these stages, hoping to help you.

Bull Market Stage One: Rapid Start

Typical Characteristics: In this stage, market confidence begins to recover, and funds start to flow into the stock market. Sectors like brokerage and finance often rise first, driving the index to climb quickly.

Judgment Method: Observe the performance of leading sectors and the changes in overall market trading volume. If trading volume continues to expand and the index rises quickly, it is likely the first stage of the bull market.

Bull Market Stage Two: Accelerating Rise Main Stage

Typical Characteristics: In this stage, external funds accelerate their entry into the stock market, with various blue chips and white horse stocks taking turns to rise, showing a clear profit effect in the market.

Judgment Method: Focus on whether the leading sectors in the market are spreading to more industries and individual stocks, while also observing whether the overall market valuation level is continuously improving. If the market shows a comprehensive upward trend, it is likely that the bull market has entered the second stage.

Bull Market Stage Three: Peak Period

Typical Characteristics: In the peak period of a bull market, blue-chip stocks may have risen to relatively high levels, and the market begins to shift towards speculation on thematic stocks and small-cap stocks. In this stage, market volatility may increase, and investors need to be more cautious.

Judgment Method: Observe whether there have been changes in the leading sectors of the market and whether there has been a surge in thematic and small-cap stocks. At the same time, also pay attention to the overall risk level of the market to avoid chasing up and down at high levels.

Bull Market Stage Four: Market Top

Typical Characteristics: In this stage, the profit effect in the market starts to weaken, and investors become cautious. Market trading volume may gradually decrease, while stock price fluctuations may increase.

Judgment Method: Observe whether the overall trend of the market shows signs of fatigue and whether investor sentiment has changed. If the market shows stagnation or downward trends, and investor sentiment becomes pessimistic, it is likely a signal that the bull market is about to reach its peak.

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