"Stock Wizard" shows how to make big profits when the market is rising

When the stock market is in an uptrend, stock prices will increase faster than the old price. Graphics: Duc Manh

When does the market enter the "bull" zone?

A bull market is a term used to describe an upward or strong trend in the stock market at a given time.

When the market is in an uptrend, the prices of assets will increase faster than the old price. This phenomenon will last for a certain period of time, and transactions will also be carried out in large volumes during this time.

Market recognition features

Some signs that can be mentioned are: The general value of the stock, index or stock market tends to increase continuously. Trading volume increases, creating buying opportunities (buying points are often found after short-term adjustments). Rapid price increases after corrections. Higher and higher highs and lows, creating a strong and continuous upward price pattern.

How long will the uptrend last?

According to experts from SSI Securities, every trend goes through three stages: Beginning, prosperity and recession.

With the beginning phase: Normally, the beginning of an uptrend often occurs at the end of the previous downtrend. Price fluctuations begin to appear, the market has slight increases in a short period of time. However, due to the impact of the previous downtrend, the price will not be able to increase too much. This is the time to accumulate potential for a strong uptrend.

In the prosperous phase: When enough potential has been accumulated and the buying power is strong enough, the price will grow strongly. In this phase, the increase will be greater and the increase will last longer. However, it should be noted that the price increase needs to be maintained at a moderate level if you want to prolong the prosperous phase. If the number is pushed up too much, the upward trend will last for a very short time.

With the recession phase: This is the time when the price increase rate begins to slow down and gradually decrease. When the selling pressure increases, the price will be pulled down. The market will reverse to a new trend at this point. The uptrend will officially end at the end of its recession period.

Invest when the market is rising

"Stock wizard" Mark Minervini believes that in the early stages of a major market rally, the key is to invest in leading stocks.

This is because leading stocks are, by definition, the first stocks to signal a buy. Some leading stocks do not correct, or correct very little, during a bear market. These are the stocks that will be the biggest gainers in the next bull market. This approach is called “bottom-up” investing.

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