The most important bull market often forgotten rule: one is supposed to be in long.

This may sound obvious, but most retail investors sell off their position in the first rally in every bull market, saying that the market has moved too far, too fast. Wealth bull members are entitled to enjoy lion’s share in the Bull Run as it has been sighted to them well in advance. Unfortunately, the retail investors are not comfortable holding on to the performing stock but they go short in the early part of bull market only to lose the money later. In a bull market, one can only be long or remain in the sidelines, if you are not convinced in the Bull Run. We should never ever go short in the bull market. Going short in a bull market is suicidal.

The market has moved up sharply as the FII’s have pumped in nearly 20,000 crores in the month of March. India Current account deficit has improved from the record high of USD 180 billion in FY13 to a manageable USD 128 billon which in fact supported the rupee appreciation. Rupee for the first time in the past 8 months has come down below Rs 60 against dollar. Gold too has corrected significantly from the recent high of $1380 to well below $1300! All these factors are adding oil to the bull market fire. This week the market may post further gains albeit some correction!