The Bear and Bull Market
The sentiments in the Stock Market is broadly classified into two types:
- Bear Market
- Bull Market
Bull Market sentiments are when everyone is feeling good and share prices, indexes keep going up north as a result of strong economic fundamentals. It is a time when investor is happy with investing in companies, when the trading volumes are high.
Bear Markets are the opposite where everything is in the red. Investors sell their stocks and book profits, no one buys anything and prices tumble. This is accompanied with poor faith of investors on different issues.
Formula for getting the most of this market trends is get into the market when the prices are at a reasonable low, holding them as they rise in value and sell when the profit price is right. Said easy, but it involves a good and solid guess as no one can time the market ever. But most investors do the mistake of buying stocks when the price is going high and selling when it starts a downward bearish trend.
