Have you ever heard the term Bull and Bear in Stock Market? If yes, then do you what does this mean? from this article on “What is Bull and Bear market? I am going to explain you the concept in detail with the difference between both the markets.
For making a start in trading or investing in the stock market it is necessary to know the basic terminology of “Bull” and “Bear” and why it is used in the share market. These terms are the indication of the market movements and are an important factor to understand for the beginner.
What is a Bull Market?
- Bull markets are defined as the market that is aggressively going up over a period of time.
- This provides an indication that the indexes will also show an upward trend in the market
- Investors or traders usually believe that the uptrend will long for a longer period.
- In this case, the country’s economy becomes strong and employment levels are high.
- Factors that affect the bull market are when there is a strong economy and when there are high employment levels across the board.
- All the types of asset classes will rise for a period of time.
Bull Market Indicators in Stock:
Check the following bull market indicators:
- Low employment rate
- More “long” doing of stock trading
- Stock prices are rising
- Gross Domestic Product is increasing
What is Bear Market?
- Bear Market is defined as the market that is exactly opposite of the bull market.
- In this market, the economic conditions fall massively or up to a level.
- This gives an indication that the indexes will move to downward and according to that, all the asset class will go down up to a certain level for a period of time.
- Factors that affect the bear market are when the share prices are showing a decline sign in the economy and it is pessimism.
- Investors or traders believe that it will continue at least for the foreseeable future.
Bear Market Indicators in Stock:
Check the following bear market indicators:
- More “short” doing of stock trading
- More losses of Jobs
- Market stock prices are declining
Now with the understanding of both the market in brief with bull and bear indicators. I would now like to discuss of the characteristics of Bull and Bear Market.
Characteristics of Bull and Bear Markets
- Changes in Economic activity
- Investor’s psychology
- Demand &Supply of the stock’s or securities
Difference between Bull and Bear Market
Check out the difference between bull and bear markets:
Bull Market:
- Bull Market is the situation where the market is rising.
- Bull Market involves buying stocks in large volumes.
- Bull Market involves buying stocks in large volumes.
- Unemployment goes down in the bull market.
- In this type of market, the investors or traders are ready to take part in the stock market to make profits.
Bear Market:
- Bear Market is the situation where the market is down.
- Bear Market involves about selling of stocks in a large number.
- In Bear Market, there is a fall in GDP of a country.
- In a bear market, the unemployment rate gets high.
- In a bear market, the investors or traders are not involved in the stock market and want to get out of the holdings to reduce the losses.
Conclusion
From this article on “What is Bull and Bear Market,” we had covered all the basic and important aspects for this topic like definition, indicator, and differences.
I hope that you find it informative for yourself and with that, I just want to conclude that you need to get the knowledge of every terminology and its uses in the stock market before you start your career in investing or trading in the stock market.
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