Learn about the difference between bear and bull market

Learn about the difference between bear and bull market

While attacking an opponent, bull thrust up the horns. Similarly, whenever the market belligerently rises it is the condition of the bull market.  In the case of bear, they swipe down and use the paws for attacking; hence it is called a bear market whenever the market falls.

The stock exchange is the place where the shares of the organizations that are listed get traded. Many people invest in shares to grow their money. There are other markets too which helps in growing money like forex, cryptocurrency market, commodity market and so on. Find out more about the cryptocurrency market here.

In the stock exchange, the terms bears and bull are used often to indicate how the market is performing at a given point of time. Below mentioned are the major difference between the bear and bull market.

Differences to note

  • Whenever the market’s performance rises overall, it is considered to be a bull market whereas the bear market is the market when the market performance undergoes a huge
  • The outlook of investors and traders are optimistic in the case of a bull In the bear market, the futuristic view of investors is pessimistic.
  • The investors and traders take a long position in the bull market that is they purchase the security and whenever the price rises up they make a profit. Conversely, the investors and traders take a short position in the bear They sell the securities so that they make a profit when the price goes down.
  • Trading in the bull market is high while the trading of stock is comparatively low in the bear
  • When the bull dominates the stock market economy grows and when the bear dominates stock market, economy declines.
  • The response of the investors is very much positive in a bull market and more people get attracted towards the stock They invest money in hope of earning good returns. But in the bear market, the investor response is negative as the market falls; the investors are scared to invest their money in stock exchange.
  • The stock prices are quite high in a bull market and in a bear market, it is very much low.
  • In the case of the bull market, you can find strong market indicators but in a bear market, one could find very weak market indicators. Hence it is quite difficult to predict the market and is tough to take decisions in the bear You need to have strong knowledge in trading and market to earn a profit.

 

 

Comments are closed.