Adapting to bulls and bears

[fahdforex]

 

Bulls and bears characterise and define the volatile market conditions. Bulls and bears is a term which is common in the trading world. It increases the hopes of traders as well as shattering their expectations. What do ‘bull and bears’ 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. 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.


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