As a beginner to the world of trading, it is handy to understand some key phrases, especially what is a Bull Market vs. what is a Bear Market.
How To Remember a Bear vs. Bull Market
Bull markets go up like the attacking horns of a bull, bear markets go down like the claws of a bear attack.
When a bear attacks, its claws swipe at you in a downward motion, so a Bear Market goes down. When a Bull attacks, its horns gauge with an upward motion, upwards is the direction of the Bull Market.
What is a Bull Market?
A bull market is a market that has its 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 remembering 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.
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