What are Bullish and Bearish Markets?
<p><span data-contrast="auto">You often hear the words bullish and bearish from traders. These words may sound foreign to you but here, we will di</span><span data-contrast="auto">scuss these terms as simple as possible. Basically, the terms “Bull” (bullish) and “Bear” (Bearish) </span><span data-contrast="auto">are used to describe the overall financial market is performing in general. Bull market means that the trend is going upwards meanwhile bear market means </span><span data-contrast="auto">that the market is going down. Remember that a single day cannot tell you whether the market is in bullish or bearish form. It takes weeks or months to tell which dir</span><span data-contrast="auto">ection the market is heading. </span></p>
<p><span data-contrast="auto">What happens in a Bull Market? </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">In a bull market, investor confidence or traders is high. This usually means that there is optimism and positive expectations that good results will continue. </span><span data-contrast="auto">The bull </span><span data-contrast="auto">market occurs when the e</span><span data-contrast="auto">conomy is doing well. This is usually related to the equity market in high</span><span data-contrast="auto">. Despite being related to equity market </span><span data-contrast="auto">it applies to all financial markets like currencies, bonds, commodities, etc. </span><br />
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<p><span data-contrast="auto">What happens in a Bear Market? </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">The bear market means that a negative trend is happening in the market. Investors sells riskier assets as those from emerging markets. The chances of loss are far greater because price</span><span data-contrast="auto">s are losing value. </span><span data-contrast="auto">When the bear market happens, investors or traders</span><span data-contrast="auto"> </span><span data-contrast="auto">would most likely be better off short-selling or move to safer investments. </span><br />
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<p><span data-contrast="auto">Why does it Matter? </span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">Forex trading is always done in pairs. If one currency is weakening the other is strengthening. You can trade both ways meaning you can take a long (buy) or short (sell) view in either currency pair. With this, you can take advantage of the rising and falling markets. By determining the bull and the bear trends, you get to know which is stronger and which is not. Understanding the market trends properly can make a trader decide better on how to manage risks and when to enter and exit trades. </span><span data-contrast="auto"> As forex trading is always done in pairs, buy the strength and sell the weak should be your trade.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
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<p>Risk Disclaimer:</p>
<p><em>Information on this page is solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your thorough research before investing in any type of asset. Learn to trade does not fully guarantee that this information is free from errors or misstatements. It also does not ensure that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk, resulting in the loss of a portion or your full investment. All risks, losses, and costs associated with investing, including total loss of principal and emotional distress, are your responsibility. </em></p>
<p>The post <a rel="nofollow" href="https://www.learntotrade.co.uk/bullish-bearish-markets/">What are Bullish and Bearish Markets?</a> appeared first on <a rel="nofollow" href="https://www.learntotrade.co.uk">LEARN TO TRADE</a>.</p>
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