market number 720x380 - Knowing the Difference: Bull Market VS Bear Market

Knowing the Difference: Bull Market VS Bear Market

In the field of stocks and investments, it is always important to be aware of important terms and concepts. For today, we will be looking at the difference between both critical market concepts; specifically: bear and bull. This is particularly crucial if you are aiming to go into Forex trading.

Here are the biggest differences:

Bull Market

The term “bull market” is commonly found on trading floors. They often found on investment blogs and publications as well. It generally refers to a market where the shares are on an upward trend. Much like a bull where in the horns are directed upward towards the sky, this represents the trend that shares and prices are experiencing in a bull market.

The duration of this trend or bull market can actually last for weeks, months, and even years—if we’re lucky.

stocks - Knowing the Difference: Bull Market VS Bear Market

Bear Market

The term “bear market” is the polar opposite of a bull market. This is odd considering the fact that bears are generally considered to be strong. Much like the bull with its horns that represent the market, there is a part of the bear that is used to define this market. Specifically, it’s hands.

Whenever bears stand up, their hands are pointed downwards. In the world of investments, this means that prices and stocks are taking a downward trend. Prices are lower and if investors are not careful, they may end up with useless stocks.

This is why it is important to be aware of terms that are commonly associated with investment and trading so that you can always be ahead of the curve. Paying attention to the terms can signal whether you need to buy more or sell what you’ve got. If you’ve got any other questions, it would be wise to ask your broker or your forex introducing broker for further information.

draw 720x380 - Before the Plunge: What are the Qualities of a Good Investment?

Before the Plunge: What are the Qualities of a Good Investment?

Before you sign the dotted line of an investment contract, serious thought must be given. In particular, you will need to be aware of the qualities that make a good investment. The best Forex brokers always keep an eye out for good investments. If you are going to be the one whose money is on the line, it would be important for you to know those qualities as well.

Here are a few of them:

money and passbook - Before the Plunge: What are the Qualities of a Good Investment?

Long-Term

A good investment isn’t just something that you can buy into and cash out within a few months. It is something that should consistently generate money for you. You must always weigh the long-term longevity of an investment before deciding to get into it.

If the investment is only good for a short while, determine if it’s worth putting your money into.

No “Down” Lines

Investments should be clear. You put in a bit of money and you should have a clear idea of what your projected earnings will be. It should never ask you to recruit anyone or two to make your cut “bigger”. If you have ever been presented with an investment opportunity that features this, you must avoid it like the plague.

No good investment will demand that you drag in other people in order to make money.

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Sustainable Business Model

One of the things that you should be looking at when it comes to the business or the investment is its model. Is the business something that is sustainable? If it something like a food fad, the market for that is passing and fickle. What can be considered to be hot today can be passé tomorrow; for example: red velvet everything!

Now, everything is Matcha. It would be wise to see if the investment you’re about to make is highly sustainable.

Now these being said, we hope that you’ll have a better idea of good investments. What other qualities of good investments do you know of?