Adapting to bulls and bears

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Bulls and Bears characterizes and defines the volatile market conditions. Bulls and Bears is a term which is common in the trading world, increasing the hopes of traders as well as shattering their expectations! But what do they really represent?


Bulls and Bears actually describe market conditions, whether stocks and/or currencies are increasing or decreasing in value.


They also demonstrate the mood of the investor, and indicate subsequent market trends.


A bull market describes a market that is increasing which is shown by an increase in market share prices. This situation causes a psychological boom installing faith in investors and resulting in a positive long term trend. This tends to happen in countries with strong and solid economies with high employment levels.


A bear market causes the opposite psychological effect; it characterizes a falling market with share prices continuously falling, so results in a downward trend persuading investors that this market decline will continue over the long term. It leads to an increase in unemployment as employers begin to dismiss workers.


Characteristics of the Bull and Bear Markets


Even though the Bull and Bear markets are mainly marked by the movement of stocks and currencies, they respond to other characteristics which investors should be informed about. The following factors are affected by both market types:


Supply and Demand for Securities – the bull market exhibits a strong demand and weak supply for securities. Some investors purchase securities although a few sell; as a consequence, share prices increase as investors compete to secure available equity. In a bear market, the opposite happens as more people want to sell rather than buy. Supply is substantially higher than demand, and share prices fall sharply as a result.




For more detail : Adapting to bulls and bears

It is said that trend is friend of trader. Every trader should trade with trends. There are two kind of trend they are bullish and bearish. There also many trend indicator to find the trends. Indicator will only tell you about trend. To execute order on right time and right price I need proper knowledge of forex. I am trading with CapitalsTrade. They help me to gain knowledge through their training resources.