For making a start in the trading in the stock market it is necessary to know the basic terminology of “Bull” and “Bear” and why it is used in the share market. These terms are the indication of the market movements and are the important factor to understand for the beginner.
What is a Bull Market?
Bull markets are defined as the market that is aggressively going up over a period of time. This is an indication that the indexes will also show an upward trend in the market. Investors or traders usually believe that the uptrend will long for a longer period. In this case, the country’s economy becomes strong and employment levels are high.
Factors that affect the bull market are when there is a strong economy and when there are high employment levels across the board. All the types of asset classes will rise for the period of time.
Key Indicators for Bull Market:
- Low employment rate
- More “long” doing of stock trading
- Stock prices are rising
- Gross Domestic Product is increasing
What is Bear Market?
Bear Market is defined as the market that is exactly opposite of the bull market. In this market, the economic conditions fall massively or up to a level. This gives an indication that the indexes will move to downward and according to that, all the asset class will go down up to a certain level for a period of time.
Factors that affect the bear market are when the share prices are showing a decline sign in the economy and it is pessimism. Investors or traders believe that it will continue at least for the foreseeable future.
Key Indicators for Bear Market:
- More “short” doing of stock trading
- More losses of Jobs
- Market stock prices are declining
Characteristics of Bull and Bear Markets
- Changes in Economic activity
- Investor’s psychology
- Demand & Supply of the stock’s or securities
In this blog, you will get to know about the basics of the bull and bear market and why it is important to know and its application in the stock market. Trading Fuel is providing the content in the site for the learners and readers to learn more about the stock market. We are daily updating our site with the new blogs on the vast topics of the stock market. We hope that you like our blog of ” What is Bull and Bear in Share Market? “For any further suggestions or doubts, you can contact us through e-mails or calls. Read more from Trading Fuel.