The good news on the national and international economic front has fed optimism among stock market investors and gave bulls the upper hand, at least for a moment. Specialists polled by Wall-Street identified the strategies that can help investors benefit of the various profit-making opportunities arising from this turnaround.

Speculative deals stand for discipline and risk taking

Since early April until Tuesday, the stock market indices hiked by roughly 28%, the highest growth being recorded by the index that gauges the performance of financial investment companies, BET-FI – 38%.

In order to benefit of the bear market rally in the midst of financial crisis, insiders polled by Wall-Street say investors should have a strict disciplinary approach in deciding when to buy or sell stocks.

“Over the past year and a half, we’ve seen that in spite of the fact that the market followed a sharp downward trend, it was not linear, but floated up and down, swinging from all time highs to bottom lows, when the stocks returned major profits”, Gabriel Aldea, broker at Intercapital Invest told Wall-Street.

He stressed that for earning high returns from speculative transactions when the market goes up, the investor must adopt a strict disciplinary approach by establishing price barriers for buying and selling.

Establishing the stop loss levels is essential, as loss limitation is a core element in drawing a speculative strategy.

What strategies do specialists recommend?

Adrian Duna, financial analyst at KD Capital says investment strategies when the market rallies differ according to investors’ stock trading venues or cash plays.

Buying stocks at the beginning of the rally in order to reduce the stock average, and if the price exceeds this average, may result in high returns or an honorable exit.

If an investor has enough cash, he can c