What is bull and bear market?
Positively trending markets are characterized by the market. A market constantly going up over some periods of time and a people think and assume that stocks price will rise and start putting money into the share market then they called market is bullish.
Bear market is completely reverse to the bull market. A market continuously going down over some periods of time and a people think and trusting that stock price will down and start releasing money into the share market then they called market is bearish.
What to do in bull and bear market?
In a bullish market, people’s need to take the benefit of rising price by purchasing the stock beginning period and after that selling them later when the price have achieved their peak. In a bullish market, investors can invest own money into more equity with a higher chance to making a good returns.
While in a bearish market, the chance of losing prices are higher because market price continuously down and the end of down side is not often in sight. Even if investors do decide to invest with the hope of an up trend, investors are likely to take a loss before an turnaround occurs. In the bearish market traders can take the advantage of short selling by sell the stock for short of time.
- The expressions “bear” and “bull” are named after how every animal strikes, a bull will drive its horns up into the air, while a bear will swipe down. These terms were then related to the position of a market: if the market was up, it was seen as a decidedly bull market; if the market was down, it was seen as a decidedly bear market.