Bull markets have crazy way to seduce investors that stocks only go up & will never go down.
It’s wiser to not get seduced by bull markets.
It’s prudent to keep some cash in hand.
Raise cash in portfolio by booking profits in stocks which have ran ahead of its earnings & are overvalued.
Respecting your stop losses as & when they are. They are to limit the damage. Respect it.
Avoiding any kind of leveraged buying or buying stocks on loan.
Not putting any capital in markets which you are going to need within a year.
Be mentally prepared for a crash or a correction coming anytime. This will make the landing soft as & when it happens.
Bad times don’t last forever. So does good times. Always remember it’s a cycle.
The better prepared you are, the better you’ll do in investing.
The lesser prepared you are, market has its way to show you the exit door.
Plan. Prepare. Execute.
