Bull Market Profits
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.
The term bull market is when the stock market is increasing in price. These increases usually begin when the market is at its lowest ebb. You can see with gold stocks over the past few years. When the cycle changes and things begin improving the investing market feels there are profits to be made.
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.
The patterns seen in a bear market tend to be a very big initial drop in values, which pushes a lot of the speculators out of the market. This is followed by a temporary period of stock price increases before the market starts to decline again over a longer period.
But bull and bear markets are a cycle and one follows another. The problem is that there is no guarantee when the change will come or how long the patterns will last. It is easy to identify in retrospect, but much harder predicting the future.
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. - 23204
The term bull market is when the stock market is increasing in price. These increases usually begin when the market is at its lowest ebb. You can see with gold stocks over the past few years. When the cycle changes and things begin improving the investing market feels there are profits to be made.
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.
The patterns seen in a bear market tend to be a very big initial drop in values, which pushes a lot of the speculators out of the market. This is followed by a temporary period of stock price increases before the market starts to decline again over a longer period.
But bull and bear markets are a cycle and one follows another. The problem is that there is no guarantee when the change will come or how long the patterns will last. It is easy to identify in retrospect, but much harder predicting the future.
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. - 23204
posted by X - Men @ 2:04 AM
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