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Bull Market

A bull market is a long period when prices generally trend upward.

Why this matters

Bull markets can build confidence, but they can also encourage overconfidence and excessive risk-taking.

Simple example

Major stock indexes climb over several years, with only short pullbacks.

Common mistakes

  • Assuming recent gains will continue forever.
  • Taking more risk just because “everything is going up.”
  • Ignoring valuation and position sizing.

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