This article written by Sherin Dev, Editor of Investinternals.com Intelligent investors generally sit quiet when market started with Bull phase or in the peak of bull phase. It is quiet difficult to find best stocks in bargain price at this time. Bull phase doesn’t mean all the stocks are expensive or cheap, but for an ordinary investor it is a difficult task to find right business to invest at this time. Instead of putting lots of efforts to find good stocks, a true investor can learn and practice some best strategies highly relevant and applicable to the time of bull phases. Here are some from my personal practices at the time of market peak which would be highly beneficial to know:
Bull phases generally last several months to years. If it long at least one year, an investor would get lots of time to build capital by save money little by little to a specific account intended to build capital for stock investment whenever possible. As long as we don’t have anything to do, draw a plan for the next investments and focus to build capital for that. Utilizing the auto-saving possibilities such as sweeping accounts, recurring deposits are the best options to build capital slowly but steadily. You can even deposit a fixed amount in each month in a particular day, to the investment account to build your capital.
Monitor Scams, for Best Buying Opportunities
Once you are in the process of building capital, that would not work alone. Watch for scams that happens in the market that would drag the prices of good companies to a level investors can easily buy and hold the stocks. There are plenty of such happens at the time of bull phase and it is one of the important points a good investor always keep an eye. Any issues in the management level, legal issues, war between competitors all can be considers as a best opportunity to drag the prices of good companies, to down.
Find New Companies – Future Gold Mines
Start searching and analyzing companies that can convert as a gold mine later. There are lots of companies in such kind and the investors may not have heard the name about. Study the business, profit making capacity as well as how such companies able to reward investors in future. Once of the core point to remember is, the study should be future focused than current. Companies that are beginners and the business having ample growth potential in the future should be there in your list to monitor and analyze as future buy. Early identification of right business increase the chances of investing early and get hugely profited in the future.
Find New Fast Growing Products/Services
Keep an eye on the market to identify any fast growing products are services. Identifying and investing on such business early would be an intelligent move and turn as a fantastic investments later. However lots of efforts required to identify such business from the group of thousands of products and services that spanned across various areas and usages. Here is the real capability of an investor revealed.
Monitor Invested Companies
During the search for new investment opportunities, one should not forget to monitor the already done investments to identify a good selling option. Overheated stocks needs to be sold and bull phases would provide ample opportunities for that. Companies with strong fundamentals and ample growth opportunities would be retained as bull phase generally would increase the prices of each stocks. Be sensible to identify what needs to be sold and what mus hold.
Above 5 strategies are the best to practice at the time of any bull phase. Instead of sitting ideally for long time during bull phase, creative and intelligent investors can best utilize their time to prepare self and tap possible investment opportunities during the bull phases and afterwards.