Why A Bull Run In The Stock Market Is The Time To Take Profits


by Joel Teo - Date: 2007-02-05 - Word Count: 364 Share This!

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.)

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