The three stages of a complete bull market can actually be summarized well.
Why does the bull market stage rise? To put it simply, the market has dropped to bargain prices, and experienced individuals see an opportunity to grab cheap stocks, feeling that there is gold everywhere. Additionally, technical indicators deviate too much, requiring a quick rise to repair them. Therefore, the bull market stage rises quickly, often led by deeply valued stocks and main sectors, as well as large financials that can pull the index. This stage comes quickly and goes just as fast, with many people not realizing it has ended.
Next is the bull body stage, which is the longest phase in a bull market. During this stage, the index may fluctuate and rise slowly, but individual stocks perform remarkably. Each round of the bull body stage has a main line with the largest gains. For example, in 2015's leveraged bull market, the main line was internet finance and small companies involved in mergers and acquisitions, with the ChiNext leading the way. During this stage, the profit effect attracts more and more people into the market, but the rotation is quick, with funds constantly flowing between sectors. Therefore, making money is not easy at this time, and chasing highs and cutting losses can lead to losses. Investing based on the index is also meaningless because individual stocks may have risen significantly. In this stage, valuations seem to fluctuate, but in reality, they are slowly rising.
Finally, there is the bull tail stage, where everyone can see that the bull market has arrived, with stocks generally rising and almost everyone making money. However, the bull tail stage rises quickly and ends just as fast, usually completing in a few months. For example, in the great bull market of 2007, the bull tail stage lasted for 7 months; in the leveraged bull of 2015, the bull tail stage lasted only 6 months.
The test of a great bull market is not just the rise and fall of the market, but also a test of our mindset. In the face of account fluctuations, we must remain rational. Next, I will announce the potential tenfold coins! It's better to grasp than to guess! Like + leave a message, and feel free to share.