In a bull market, regrets usually fall into two categories:
Not betting enough
Not keeping enough
To address
(1), you size up, increase your portfolio leverage, take more illiquid positions, and hold through wild price moves and lofty valuations. The trade-off? Higher portfolio volatility, increased risk of ruin, and possibly a significant drop from your portfolio’s all-time high. If executed well, you can earn a lot more but likely keep less.
To fix (2), you take profits steadily as prices rise, adopt a more conservative approach as the trend extends, reduce leverage, and focus on trade management. The trade-off here? Less potential upside and missing out on some big opportunities. But if done right, you keep more of what you make, albeit at the cost of missing some gains.
Ultimately, it’s tough to fix both problems at the same time.
Pick your poison.**
Regards
CA Sandeep Matta