Stock Trading
Should I trade in a Bull or a Bear market?
First I guess you should know
what is a bull market and what is a bear market.
A bull market is a market showing
confidence. Prices for stocks generally go up. Indices go up
too. Trading volume or the number of shares traded is also
high. If this happens then the market is showing bullish
tendencies. If this happens for a few days in a row then
the market is a bull market. The huge rise of the Dow and
Nasdaq during the tech boom is a good example of a bull
market.
A bear market is the opposite.
Not the exact opposite as a falling market is exactly that. A
bearish market has bullish tendencies but withdraws itself as
gains are great. A bear is a tentative bull. Prices go up
slightly and then go back down. Indices are steady
and volume is not low but it’s not sparkling either. When the
market is steady, the consensus is waiting for the bullish
investors to drive the market forward.
You can trade
in either a bull or a bear market. The basic concept of
stock trading is to BUY LOW and SELL HIGH thereby giving you a
PROFIT. In a bull market, share prices are rising so if you are
going to buy in a bull market try and buy early in a bull
run. The best trades you can make in a bull market are SALES as
prices are HIGH. Lots of people buy in a bull market as
they are following the gains. However, it is best to BUY in
a bear market as prices invariably are LOWER. However, when
indices are down the average person doesn't feel confident in
buying stock as they feel they will lose money. Buying
when the market is low is the key to success in stock
trading.There’s so much to think about when looking at
stock trading; we’ve already found the best links below to
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