US stock market is at record highs and stock market futures point to another open higher for today. Why this 10-year-old bull market is actually a one-year-old: Morning Brief.
At these high levels what is the best way to trade stocks? We are in a bull stock market, but chasing stocks, stock market higher is a very risky move. A prudent investor or trader looking at the current stock market graph or stock market chart will note that for the past days there are new record highs.
The best way to trade stocks now is to be patient, have a risk management plan and focus on looking stocks to buy and stocks to sell. While the trend is up now, it does not make sende for all stocks to move up. Fundamentals and valuation of stocks are two important financial metrics to analyze. If you buy stocks, then have a close stop-loss, and use a trailing stop should the stock market move higher. Selling stocks may now seem risky, but many stocks are very overvalued now. Top stock investments now are those which have missed the rally, not those who have moved up for so many time. Be careful about stock trading at these very high levels. A stock market correction or crash is not unlikely.