Bears and bull market, what is the difference?
How can you differentiate one from the other and why is it important to learn them.
This is basically based on the understanding on the characteristic of bear and bulls.
When bull attacks it usually thrusts its horn up depicting an increase in the stock price.
On the other hand bears attacks with its paws swiping down which shows a decrease in the price of stocks.
Bull is Positive
In a bull market, movement usually presents an increase in stock price.
Most people usually shows positive sentiments and generally have good outlook on business.
This is where you see a lot of jobs are coming, most people are earning well and most of the business are having good revenues.
Average stock movements depicts upward movement of stocks.
At this time you can see a lot of constructions and economic developments.
Most of the Traders at this point are buying stocks that are at hype. While investors are closely waiting patiently to sell at a target price.
You have to be careful though cause it might come to a point where everything is overvalued than it actually is. This is when the paws of the bear comes.
Bear jumps out of the window
When the Bear comes, it is exactly the opposite of the bull.
It unleashes its paws crushing everything down. Usually this happens very fast.
Historically everything built on stock prices during the bull market literally disappears in an instant. A lot of losses here are rampant. You could see a bloody red market that can hurt really bad.
This is where you can see a lot of negativity, a lot of fears and a lot of uncertainty.
You can see a lot of your friends and neighbors and if your unlucky enough you yourself will loose your job.
It is where economy development is at halt. Everybody now are holding on to each others savings to be able to survive. This is where good financial education and preparation plays big part.
This is also the time where wise investors buy good stocks at a surplus.
How can you differentiate one from the other and why is it important to learn them.
This is basically based on the understanding on the characteristic of bear and bulls.
When bull attacks it usually thrusts its horn up depicting an increase in the stock price.
On the other hand bears attacks with its paws swiping down which shows a decrease in the price of stocks.
Bull is Positive
In a bull market, movement usually presents an increase in stock price.
Most people usually shows positive sentiments and generally have good outlook on business.
This is where you see a lot of jobs are coming, most people are earning well and most of the business are having good revenues.
Average stock movements depicts upward movement of stocks.
At this time you can see a lot of constructions and economic developments.
Most of the Traders at this point are buying stocks that are at hype. While investors are closely waiting patiently to sell at a target price.
You have to be careful though cause it might come to a point where everything is overvalued than it actually is. This is when the paws of the bear comes.
Bear jumps out of the window
When the Bear comes, it is exactly the opposite of the bull.
It unleashes its paws crushing everything down. Usually this happens very fast.
Historically everything built on stock prices during the bull market literally disappears in an instant. A lot of losses here are rampant. You could see a bloody red market that can hurt really bad.
This is where you can see a lot of negativity, a lot of fears and a lot of uncertainty.
You can see a lot of your friends and neighbors and if your unlucky enough you yourself will loose your job.
It is where economy development is at halt. Everybody now are holding on to each others savings to be able to survive. This is where good financial education and preparation plays big part.
This is also the time where wise investors buy good stocks at a surplus.
This is where future stock investors like you can get good number of shares from great companies.
See even great companies gets affected. Stock prices of valued companies also gets pulled down too due to general negative sentiments.
A lot of good companies are affected eventually after the sell-off. You can see most companies cross cut through retrenchments, causing a lot of job loss for many people.
A lot of good companies are affected eventually after the sell-off. You can see most companies cross cut through retrenchments, causing a lot of job loss for many people.
This is where investors buy more shares and traders stay away on dipping stocks.
Hope this serves you on your start ups to Stock investing.
To your financial freedom-
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