What is Bulls and Bear market?

-

WHAT IS BULL MARKET?
The bull market term signifies investors confidence and optimism regarding the market. The bull market is a sign that the investors have high expectations from the market and the positive results will continue for a long time.

Generally, the bull market term is used to express the price movement of the stock market but it applies to all the financial markets.
It can be currencies, bonds, and commodities, etc.
When the market is on bullish trend then in the economy everything will be growing GDP, rising prices of financial instruments, the supply of jobs, etc. Everything will be positive.
There is no specific metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline.


WHAT IS BEAR MARKET?


The reverse of the Bull Market is a bear market. Bear market signifies bad economy, recession, and fall in prices of financial instruments.
When the market is bear that means the investor’s behavior during a bearish market is highly pessimistic due to fear of falling prices and this trend will continue for a longer time.

The causes of a bear market a weak or slowing or sluggish economy will bring with it a bear market. The signs of a weak or slowing economy are typically low employment, low disposable income, weak productivity and a drop in business profits. In addition, any intervention by the government in the economy can also trigger a bear market.
Bear market, changes in tax rate or in the fund rate can lead bear market. Avoid the stocks that set off the positively trending markets in the past stage.


WHY DO WE USE BULL AND BEAR TO EXPRESS THE TRENDS?

These two animals the bull and the bear have got different ways to attack their opponents.
A bull thrusts its horns up into the air in upwards direction and the bear swipes its paws downwards.
This is the reason the bull and bear is used to signify both trends in the market. This way if the market has uptrend then it is a bull market and if the market has got downtrend then it is a bear market.
Alliance research provides best share marketing tips of nitty-gritty of market in efficient way. When market suffers to bulls and bear, our highly research expert team will provide all the information regarding to ups and downs of the markets.

Comments

  1. Phani Kumar12 June 2020 at 02:12

    Thanks, This post is good. Your posts are helpful and provide valuable information.
    Marico
    Bharti Infratel
    Godrej Consumer Products    .

    ReplyDelete

Post a Comment

Popular posts from this blog

Technical picks- Top 15 stocks that experts are betting on for 14-70% returns in FY20

-
Technical picks: 15 stocks that experts are betting on for 14-70% returns in FY20, If the momentum continues, the index is all set to climb Mount 12K and hit a target around 12,400-12,700 in the next 12 months, according to experts. Nifty50 has rallied about 13 percent so far in FY19 and if experts are to be believed, it is on track to hit fresh record highs in FY20. The optimism in market lately has been on the back of hopes of a stable government post elections, strong buying by foreign investors, rate cut by Reserve Bank of India and stability in rupee-dollar pair. Historically, we have seen a decent rally in the market before and after the general elections. This year also, Nifty has formed a new base in the 10,600 – 11,000 zone and has been witnessing pre-election rally in the last few weeks. If the momentum in market continues, Nifty could touch 12,000 and hit a target around 12,400-12,700 in the next 12 months, according to experts. “If we go by the principle of ‘
Read more

What is a Trading Plan?

-
Image
How many times have you had a position to go against you? You planned the trade correctly, but soon after you bought your initial position, you discovered that the price you paid was higher than what it was now worth. The first trade was a loser compared to the market price. What could you do with this losing trade? You could sell it out and look to buy something else, or you could buy a few more shares or contracts at the new lower price. Which is the better solution to your dilemma? In most cases, Most people, however, would buy more at lower prices. They would average their losses on the way down if they are buying, or average their losses on the way up if they are shorting. There's an old saying that if it looked good at a higher price, it looks a lot better at a bargain price. Traders determine whether they will average or not by looking at what they are trading: stocks,  options , or futures. Let's look at each of these trading vehicles in terms of averaging
Read more
-
Image
Cash market is a marketplace where the immediate settlement of commodities takes place in this market between the purchaser and the seller. This is also known as spot market cash market transactions take place over the counter or in a regulated exchange in contrast transactions take place exclusively on exchange. The price of the cash market is usually less than the futures market this market has two day delivery period due to the time duration to move cash from one place to another. In this market most speculative retail trading is done as spot transactions are on an online platform in this market the moral context speculation is considered negatively. Then there is also a part of this market known as the energy spot market where surplus energy producers instantly spot purchasers or buyers for energy and negotiate prices within milliseconds and deliver the energy. In this market, securities are traded in a possibly changing current market place. Cash market is differen
Read more