DEFINITION of a Bull market
A bull market is a financial market of a group of securities in which prices are rising or are expected to rise.
WHAT IT IS IN ESSENCE
The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, currencies, and commodities. When a market, instrument or sector is on an upward trend, we are speaking about the ”bull market”. This is because bulls are having taken control.
When the market is on a continuous downward course, it is called a bear market because bears are in domination.
This period is usually presented by wide-ranging optimism and confidence, with positive news driving more gains and negative news more likely to be overlooked. Bull market which is represented by the bull symbol signifies an upward market trend.
Whereas bear symbol represents a general decline in the stock market over a period of time.
A bullish market is a period of generally rising prices.
This trend is when the market going up aggressively over a period of time. As the market starts to rise, there becomes more and more greed in the stock market. Market perceptions can affect securities prices depending on how many bulls or bears there are in the market. This is best expressed by the bull/bear ratio. In either case, bulls and bears can impact the direction of market movements as a result of the investments they make.
If you’re having difficulties remembering the which animal describes what, just remember that bull attacks by thrusting his horns in an upward movement. While a bear attacks by swiping his paw in a downward movement. Therefore, if the market goes up, it’s a bull market; if the market trends down, it’s a bear market.
HOW TO USE
Investing during the bull market trends is about taking advantage of fear and greed. Everyone likes to buy when there’s fear. In other words, when the market is going down, everyone loves to be a buyer. When the market is going up, everyone likes to be a seller.
Investing means to move almost exactly the opposite of the way most people are moving in the marketplace.