How to invest in a bull market

Take advantage of a rampaging bull market with these financial tips.
You Will Need
* Mutual funds
* Stocks
* The currency of emerging countries

Step 1: Buy mutual funds
Buy mutual funds, which tend to go up in a bull market because the funds are all buying the same stocks.

Step 2: Sell small-cap stocks
Sell small-cap stocks, also known as emerging-growth stocks, which don’t usually see as much growth in a bull market because they are not owned by mutual funds.

Step 3: Buy emerging-market stocks
Buy stocks sold in emerging markets because a strong world economy boosts their value.

Step 4: Sell your bonds
Consider selling safe investments like bonds and dividend-paying stocks so you can take advantage of the higher returns that can be collected during a bull market.

Don’t sell your safe investments if you are nearing retirement age.

Step 5: Buy "on margin"
Consider buying stocks “on margin” – which means buying them with borrowed money. Stocks are more likely to rise during a bull market, making you enough money to justify the risk.

Step 6: Trade stock options
Buy stock options, which are easy to profit from in the volatile atmosphere of a bull market.

Step 7: Don't buy IPOs
Don’t buy initial public offerings, also known as IPOs. In a bull market, there’s such a demand for stock that many mediocre companies go public, only to go bust later.

Step 8: Buy the currencies of emerging countries
Buy the currencies of emerging economies, which tend to thrive in good global economies thanks to their low costs of manufacturing.

Fact: According to the Stock Trader’s Almanac, the longest bull market on record ran from October 11, 1990 to July 17, 1998, gaining a total of 295 percent in value.