Bull And Bear Market Explained
Bull and bear market is a much-known phenomenon in the stock market.
The names bull and bear are the symbols used of two animals which act as opposite opponents.
The rises or the falls happen in a fraction of seconds.
At one instant the record shows profit and the other minute the record shows a loss.
This is how the battle between the bulls and bears continues.
The ups and downs at times have a devastating effect on the market.
If we start analyzing the bull or bear market, they are both different in there own way.
To know the market, understanding how either a bull or a bear market works is very important.
Both the words have opposite meanings like the Bull market is where prices of the stocks increase in the stock market and the sign of bull indicates confidence as it thrusts its horns up into the air.
The trader is always on the profit side.
This type of situation mostly happens due to the boom in the economy.
In this type, the shares that are invested in the market are in for a rise or are expected to rise in the near future.
When we technically analyze the market, the rise seen in the market is of at least 20%.
The right thing to be done for the investor in the bull market is buy to buy early and sells them when it reaches the profit point.
On the other hand, bear market symbolizes fall in the market or decline in the prices of the stocks invested.
As this is totally opposite of bull as it shows lack of confidence and swipes its paws down.
The prices of the shares continuously drop which results in a downward slope in the market.
This condition normally leads to a rise in unemployment.
The decline is mostly 20% in the downward direction.
As the rise or fall can’t be predicted in this situation the trader should opt for short selling as it is a safer option.
This situation is mainly critical for buyers and sellers.
A trader needs to be careful while trading in this market.
They need to be systematic while planning any buying or selling of any stock.
There are instances where people tend to lose money or even make a profit in similar situations.
As for both the markets the ending periods are different and are caused by different reasons for the market.
The investment in this market requires knowledge.
A person has to know when to buy the stock and when to sell.
As both, the markets have influence in the market the investor needs to remember that every market has an upturn at a certain time.
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