Investing in stock markets is an ongoing process. When investing in the stock market, you need to hedge your portfolio against losses by looking at the rising capital from the trending market and use the volatility periods in the markets to your advantage. Opportunities for growth exist in both the bull and bear markets. Both of these types of markets are fraught with risks. However, making decisions with risk and uncertainty is the essence of equity investing. Decision-making requires discipline, consistency, and focus.
We show bull and bear toys in the papers or on TV as Bull Market, Bear Market. These terms are a little harder to understand when first entering the market field. So we will briefly explain the terms bull market and bear market in a way that readers can understand. Let's see what the actual bull market and bear market are.
Bull market
If the Sensex and the Nifty, which are indicators of the stock market, move-in gains, it is called a bull market. Or investors who have invested in the stock market in the belief that the stock markets will run at a profit, with an optimistic outlook is called a Bullish or Bull Market. All investors in this bull market are more inclined to buy shares. The share prices of almost all companies are rising.
A characteristic of a bull market is that the market stays up for a while with price increases. A bull run that is usually associated with an increase in equity prices can extend to other investments such as real estate.
Bear market
If the Sensex and Nifty move in losses respectively, it is called a bear market. Or investing in the stock market Most of the stock markets are called "Bearish" or Bear Market if they are afraid of being at a loss. Share prices of almost all companies are also falling during this time. All investors tend to sell shares out of fear. The stock market is in a state of panic, losses, and panic.
However, the stock market being in profit means the bull market with a "bull" and the stock market with a loss in a "bear". There is a reason for that. That is, the bull lifts its opponent with its horns and throws it. So the rise in share prices is called the bull market. Also, the bear drags his enemies from top to bottom. That is why the fall in share prices is called the bear market.
Those who have a positive outlook on the market are called bulls. Also, those who are pessimistic that the market is losing are called bears. The stock market is always at war with these bulls and bears. If more shares are bought in one day and the share price rises, the bulls will win that day. Also if the share sales are high and the share prices fall then that day the Bears are winning.
In this way, the bulls and bears are used to indicate the market trend of the stock market.
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