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Market Trends and Bull or Bear Market Indicators

Utilizing the stock market as an investment strategy can be a worthwhile method to create personal wealth. Understanding how to purchase shares and trade options is a straight forward process that can help you gain financially. In order to make sure that you continue to acquire greater monetary value, it helps to understand market trends and indicators. In addition to maintaining a diverse portfolio, being aware of those events which can signify bull or bear market conditions will result in more favorable results. Keeping abreast of these factors can help you continue to earn from your investments.

When the stock market is experiencing a bull market, stocks are rising and are expected to continue to increase in value. The idea of using a bull to indicate favorable market continues comes from the bull’s natural tendency to raise its horns upward. The market trends and indicators that can be used to help personal investors make wise choices are the overall hopefulness that investors express toward various investment opportunities. If current stock holders feel that their investments will perform well, analysts will use the term bull market to suggest that others consider the purchase of stock.

Contrary to a bull market, the market trends and indicators that establish a bear market are noted by falling market prices. Usually these conditions result in a general sense of cynicism and distrust in the ability for various stocks to create wealth. This can cause investors to begin panicking and cause a major stock market crash. A bear market is different from a simple market correction in that a bear market typically lasts for a longer time period. The term comes from a bear’s tendency to swipe their paws in a downward motion. For an investor, a bear market is a poor time to enter into the stock market.

For someone that is interested in finding investment opportunities within the stock market, it helps to understand the conditions that are currently in existence. While it may appear that a bear market is a good time to purchase stocks, this is not recommended. While other financial signs can be used as valid market trends and indicators for the stock market, it is difficult to predict when the stock market will emerge from a bear market. Use caution and common sense when considering using personal funds for stock market investments. The best way to offset losses is to diversify your investment options.