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:
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.
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.