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.
intersting article
This analysis is pretty new to me I’ve never seen it in this light before