Knowing A Bull and Bear Market
The terms bull and bear markets are used to describe the general trend of either increasing or decreasing stick prices. Of course stock prices fluctuate during the course of any trading day. The bear and bull market descriptors describe a trend over a longer period. Some analysts suggest the minimum time period is two months and the general price change needs to be plus or minus twenty percent.
A Bull Market is one where the overall stock market in rising in value. The swing to a rising market occurs after it has fallen a long way and things were looking rather negative. Take a look at gold stock picks for example. When the bull market comes after such a period investors feel they can make money.
When a bear markets occurs there is a period of constant stock price decline. The decline is not in one stock but in the bulk of the market.
Probably the most well known bear market was the decline after the 1929 stock market crash. Following this 90% of share values were wiped in less than five years.
Most bear markets work with the pattern where there is a large initial decrease in values which eliminates many of the speculators from the market. Then there may be a short period when prices rise and investors think the worst is over. This is then followed by a period when there is simply a sustained decline.
But after bear market comes a bull market. In a bull market there tends to be higher levels of trading. The key to making money is to buy a stock at lower price and sell it as it rises. But no one has a crystal ball and doing so is easier said than done.
Many investors forget markets are cyclical. It is possible to make money in both bull markets and bear markets but to do so requires some understanding of what sort of market you are investing in. - 23221
A Bull Market is one where the overall stock market in rising in value. The swing to a rising market occurs after it has fallen a long way and things were looking rather negative. Take a look at gold stock picks for example. When the bull market comes after such a period investors feel they can make money.
When a bear markets occurs there is a period of constant stock price decline. The decline is not in one stock but in the bulk of the market.
Probably the most well known bear market was the decline after the 1929 stock market crash. Following this 90% of share values were wiped in less than five years.
Most bear markets work with the pattern where there is a large initial decrease in values which eliminates many of the speculators from the market. Then there may be a short period when prices rise and investors think the worst is over. This is then followed by a period when there is simply a sustained decline.
But after bear market comes a bull market. In a bull market there tends to be higher levels of trading. The key to making money is to buy a stock at lower price and sell it as it rises. But no one has a crystal ball and doing so is easier said than done.
Many investors forget markets are cyclical. It is possible to make money in both bull markets and bear markets but to do so requires some understanding of what sort of market you are investing in. - 23221
posted by X - Men @ 3:34 AM
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