As a beginner to the world of trading, it is handy to understand some key phrases especially, what is a Bull Market, What is a Bear Market and what is the difference.
What is a Bull Market?
A bull market is a market that has it a primary trend as going upward. This means, in general, the key Indexes are rising.
Why is it called a Bull, no one really knows the true origin, however, what is important is how to remember what a bull market means.
How do I Remember The Direction of a Bull Market?
Imagine if you will, you are being attacked by a bull, the bull would charge towards you with its head down and then attack with its horns surging upwards.
This is the same as a Bull Market, attacking in a strong upward move.
The same analogy applies to being Bullish on a stock, or in general being a “Bull” means you are optimistic.
What is a Bear Market?
Although this cute picture of a bear cub is
charming, “Bear Markets” are anything but restful, especially for someone invested in the Stock Market.
A bear market means Indices are in general on a downward trend.
How do I remember the direction of a Bear Market?
The simplest way to remember this is to envision a bear attacking you. It would be standing on its hind legs towering above you and reaching out a clawed paw, it would take a mammoth swipe down at you.
Down is the direction of the bear, and people who have turned bearish on a stock are also holding the pessimistic view that the stock will be moving downwards in price.