Operation strategy in the bull market in 2023

Everyone knows that in a bull market, it is a great opportunity to make profits, because most individual stocks will rise accordingly, whether good or bad, and this is also an opportunity for traders who follow the trend to show their talents. to what extent. Just set the stop loss point and follow the main bargaining chips, and you can make continuous profits in a short period of time. In May 2023, Moonlight owns several individual stocks, and they also catch up with this trend and start to rise to a profit point, turning from green to red. Because these individual stocks were not at the so-called lowest point when they bought last year, but they were able to make a profit, which means that investors who bought at a low point also made more profits. At the beginning, I was still in a state of losing money before and after ex-dividend last year, so I had to leave it alone and get the dividend first.

And now in mid-June, the stock market has reached 17,000 points . Don't doubt that when the rising trend comes, it is so crazy. Whether it is a short-term, medium-term or long-term investor, you can feel this force that makes funds rise. But the next question will be, how to use the profit after the rise? Short-term investors will argue: Of course, invest in strong stocks again, enjoy the pleasure of the three major legal persons driving the rise, and hitchhiking is the happiest! Stock deposit investors believe that although the upward trend is irreversible, they can still buy stocks that they are optimistic about when there is a slight pullback. Therefore, although the more you buy, the more expensive it will be during the rise, you still cannot stop entering the market, but the target of buying will be different. Seeing that everyone is buying, have you thought about what your strategy is?

First of all, in this upward trend, Moonlight is also learning how to sell in batches. It is of course gratifying to see the individual stocks you hold making a profit, but how long does it take to take a profit? In addition to setting goals, such as taking profits of 10% or 20%, it still depends on the upward trend. For example, Electronic Five Brothers is a high-yield stock, and it is one of the favorites of stockholders. I didn't expect that a stock with such a bullish stock price would rise sharply, as if it had become a soaring stock. How should stockholders respond at this time? Do you want to sell out because of the huge profit? Or continue to cling to it, anyway, there will always be dividends to receive? According to the hero's approach, he will take part of the profit first, and use it to deploy stocks that have not yet risen. In this way, after this wave of gains has passed, there will be the next wave of profits that can be operated.

For example, A stock has made 30% of the profit, so sell half of it, and use it to buy B stock that is still consolidating on the quarterly or semi-annual line, and wait for it to rise in a few months. At this time, to estimate the possible results, the worst case would be that A stock was actually sold when it just rose, and then used to buy B stock and was locked up for a long time, which means that the judgment was wrong. But looking at it from another perspective, it is not that profit is obtained from A stock, and then B stock may have the possibility of profit-taking. It can be predicted that no matter how much it rises, even if it doubles or triples, there will still be a temporary limit after all. The next step is to sort it out after a long period of retracement. If the trend is right, it will rise slowly. There will still be times when profits are taken, but not immediately. Although it is impossible to predict how far it will rise, at least you must first see if you can meet your profit target before selling.

Next, I also hope that investors who have not yet sold can continue to make profits, not only by themselves, but by everyone. Many retail investors invest in order to achieve financial freedom and save enough for retirement. If they can make profits together, it is of course very good. For example, the invention of ETF can effectively realize the general direction of everyone becoming rich together. If you take ETF as the core, and then select a few stocks to increase the weight, you can build your own investment portfolio. This is what many investment experts advocate to build your own ETF. Of course, when building your own portfolio, you will encounter issues such as the timing of selling stocks and rebalancing. Of course, doing it yourself is not as precise as ETF calculations, and can maintain the balance of the entire investment portfolio.

Moreover, every investor has different hobbies. Some people like electronic stocks, while others prefer financial stocks. It is easy to make the proportion unbalanced. Going back to the bull market investment strategy, it is also easy to unbalance the proportion of your own funds because of buying popular stocks. And because everyone is going up, it's easy to lose sight of what individual stocks are worth:

The price-to-earnings ratio is so high, should we continue to chase it?

Even if the foreign investment letter has been bought for five times, it is not quick to chase after it. Do you have to wait for them to check out before buying?

Investors will always buy popular stocks with anticipation and anxiety, but if they don't do this, is it difficult to buy those stocks that are still falling? In 2022, electric-related stocks fell to the price of the remaining steering wheel and seats, and now they have risen back. Since they are all optimistic, what should we buy if we don’t buy electric cars? Indeed, it takes a lot of courage to buy a declining stock when a bull market is rising. And no matter what, you will feel that you have lost this good opportunity for a large period of rising profits. Why go against the trend? This will only be thankless. Therefore, Moonlight's strategy will be that even if a promising stock continues to rise, it can still be bought.

At this time, the method of regular quota is adopted, so that the silver bullet that has already made profits can be released slowly. The worst case is that it starts to fall as soon as you buy it, which means that the funds are locked up. But since it is optimistic about the long-term, there is no need to be afraid of a temporary decline. If the target of buying is correct, you should be able to see the continuous rise of individual stocks. Although you can't make a big profit because you bought less, that's okay, at least if you take the train to the bull market, you will also make some profits. If you don't want to bear the risk of falling as soon as you buy, then buy stocks that are falling. Because if the individual stock has reached the stage close to the bottom, although you don't know where the bottom is, there will always be a time when it bottoms out, and it may go up again.

In other words, in the bull market, the low-end layout in advance is exactly where the next wave of funds will go. The ETFs that should be bought should also be bought, but since they are currently at a relatively high point and they are not bought much, it is better to use some of them for bargain hunting. Looking at the rhythm of the investment layout, it is to buy low to a certain extent before pulling up, and finally take a profit at the checkout. Well, since buying at low prices is a necessary step, you can do this even in a bull market. Even though it seems to violate human nature, it is one of the ways to make profits. Thinking in this way, you can also remind yourself to strike a balance between profit-taking and bargain hunting, and not let the upward trend go to your head, thinking that you will make money if you buy anything now, and invest too much money.

Moonlight feels that although he is in a good mood when he is making a profit in a bull market, it is not like in a bear market where he just wants to lie flat and has no cash to increase his position. Every long-short cycle is a good learning opportunity. It is not so dangerous to take advantage of the trend to expand profits, and it is not so terrible to buy against the trend. Let yourself get used to this seemingly crazy situation, isn't it the best of the best? But the reality tells you that when the opportunity comes, you have to come up with a strategy, and don't give up every profitable opportunity easily.