Bull And Bear Market

A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary lasting short times. Traders identify market trends using technical analysis, a framework which characterizes market trends as a predictable price tendencies within the market when price reaches support and resistance levels, varying over time. The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. Although the share tips and Stock Tips might be given by experts and experience individuals, every tip will always be uniquely different from the other.

A bull market refers to a market that is on the rise. It is indicated by a sustained increase in stock market share prices. In such times, investors are convinced that the uptrend will continue in the long term. On the other hand, a bear market is one that is in decline. In bear market stock share prices are continuously dropping, resulting in a downward trend that investors believe will continue in the long-run, which, in turn, perpetuates the spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying-off workers.

In a bull market, the ideal choice for an individual investing in stock market is to take advantage of rising prices by buying early in the trend and selling his or her stock shares when they have reached their peak. Obviously, determining exactly when the bottom and the peak will occur is impossible and something possible from Share Tips. Investing in a bear market gives a higher chances of losses because stock prices are continually losing value and the end is not often in sight. Even if you do decide to invest with the hopes of an upturn, you are likely to take a loss before any turnaround occurs. Thus, most of the profitability under bear market conditions will be found in short selling or investing in safer investments such as fixed-income securities.