Imagine yourself in a coronavirus-free New Year party, where loud music is playing and all your friends are dancing in full rhythm. Won t you participate too? But do you want to get drunk enough to lose your senses and get carried away?
On Dalal Street too, you must participate in the ongoing bulls party, but don’t get intoxicated enough to forget valuation metrics or take leveraged positions.
In a bull market, weak shares also see price rises along with the strong ones. If you hold some good stocks and they have rallied quite a bit but do not have the visibility for the future or if the price does not justify the fundamentals of the stock, then holding it can be dangerous for you.