How to Trade in a Bull Market

Investing in Stocks For Dummies

In a bull market, when investor confidence is high, the sound approach to trading is to look to buy fundamentally strong companies with the following characteristics:

With earnings that are growing faster than average
In a strong sector
In a growing economy
While the stock is approaching a technical buy signal on its bar chart and performing better than the average stock with high relative strength

About This Article

About the book author:

Lita Epstein, who earned her MBA from Emory University's Goizueta Business School, enjoys helping people develop good financial, investing, and tax planning skills. She designs and teaches online courses and has written more than 20 books, including Bookkeeping For Dummies and Reading Financial Reports For Dummies, both published by Wiley.

Grayson D. Roze has worked in the financial services industry for StockCharts.com since 2012. He now serves as a business manager at the company. He is the author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery.