In stock trading and investing there are bulls and bears. It sounds dangerous but it isn’t.
You often hear of the market being bullish or bearish. So what is a bull market and what is a bear market?
BULLS AND BEARS IN THE MARKET
A Bull Market
This is when the market showing is confidence. Indicators of confidence are prices going up, market indices like the Nasdaq go up too. Number of shares traded is also high and even the number of companies entering the stock market show that the market is confident.
These are bullish characteristics. If there is a run of bullish days then you may hear the market is a bull market. Technically though a bull market is a rise in value of the market of at least 20%. The huge rise of the Dow and Nasdaq during the tech boom is a good example of a bull market.
A Bear Market
A bear market is the opposite to a bull. If the markets fall by more than 20% then we have entered a bear market. A bear market is a market showing a lack of confidence. Prices hover at the same price then go down, indices fall too and volumes are stagnant. In a bear market people are waiting for the bulls to start driving the prices up again. However, a bear is a very tentative bull or a bull that is asleep.
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