Here are the seven most common errors traders make in a bull market.
- They wait for a correction to get long that never happens. So they end up missing a big part of the up trend.
- They do not get long with a big enough position size or enough leverage so they end up underperforming the market.
- They do not buy the small dips when they get a chance.
- Perma bears do not believe in the bullish move higher so they sell short losing money in a market where it should be made easily by being long.
- Some fundamentalists think the market is too expensive so they stay in cash missing a strong up trend as they wait for buying opportunities at better values.
- When the dip they were waiting for finally happens they are too scared to buy it and they then begin to fear that the market will crash.
- Instead of making money too many get obsessed with calling a market crash because they believe the market prices are too damn high.
The best strategy for a bull market is to not fight it but instead sit back and enjoy the ride.