Leverage.
As the market makes new high, the risk taking behavior of public as a whole are also high.
Taking excessive F&O position becomes a norm to make quick money from the rising markets.
It is at this point, when the risk is high. Especially, for F&O trades.
Only enter into those F&O trades, with the money you can afford to lose.
Buying stocks on margin can virtually blow up your capital once the market corrects. A thing which has happened in many past bull runs.
Don’t be overconfident.
Invest only in those business which are trading at reasonable valuations. It’ll offer you better margin of safety once things head south.
This is the Part 1 of Mistakes To Avoid In Bull Market. I’m sure this helps you make wise decisions & reap the maximum of the bull market in a responsible manner.
Here’s the Part 2: Mistakes To Avoid In Bull Market – 2
Here’s the Part 3: Mistakes To Avoid In Bull Market – 3
