Bull And Bear In Stock market, Bull Vs Bear in Market
Today we will learn about Bull and Bear in the stock market. Bull and bear market. What happens when bull market moves and what happens when bear market moves? What is Bull and Bear in Stock Market? What should we do when there is a bear market or bearish trend? , We will answer these questions in detail, so let's start.
In this article we will learn about the following topics:
- What is the meaning of bull and bear?
- Is there a bull market and a bear market?
- What are a bull and a bear in the stock market?
- Why do we use the words bull and bear in the stock market?
- What should we do during a downturn in the stock market?
BULL And BEARS
In the stock market, it is said that "there is a war between the bulls and the bears in the stock market" where sometimes the bulls win and sometimes the bears. Bull and Bear are the most commonly used words in the language of the stock market, so it is essential to understand bull and bear well.
Today we will talk about this and understand. After all, what are BULLS and BEARS, what is their importance, and how are they used in the stock market. If you see stock market news in newspapers, on Youtube, and on TV or on the internet, the market is said to be bullish if the market is going up, and if the market is going down then the market is bearish.
You should understand very well that there are two types of investors in the stock market. One of them is called the bull and the other is called the bear. Such investors who think that the market will go up, those investors are called BULLS. So they buy stocks and expect to make a profit by selling them when the market goes up. On the contrary, other such investors who think that the market is going to fall are called BEARS. That's why they sell the stock and in such a situation some people also earn profit by doing short selling.
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Meaning of Bull and Bear
Bull
Bull means bullishness in the stock market. When there is a buying phase in the stock market and everyone is buying shares, then it is said that the bull market is going on. Apart from this, another word made from Bull is Bullish.
Bear
Bear means recession in the stock market. When there is a period of selling in the stock market and everyone is selling shares, then it is said that the Bear market is going on. And the second word made from Bear is Bearish.
Why do BULLS and BEARS get such names in Stock Market?
If you ask why the bull or bear got such a name, the reason behind it is something like this. Bull means bull which is an animal, and the basic nature of a bull is that the bull always lifts its prey from bottom to top. Similarly, in the stock market, when a stock suddenly moves from the bottom to the top, then it is called the movement of the bulls and the market is called bullish. Investors make good money whenever the bullish market moves.
A Bear, on the other hand, is an animal, and the basic nature of a bear is that the bear always shoots its prey from top to bottom. Similarly, when a stock starts falling down in the stock market, it is considered to be a bear move and the market is called bearish. Whenever a bullish market moves, the investor suffers a loss.
Use and Importance of Bull and Bears in Stock Market.
As we mentioned earlier, Bulls and Bears are the most commonly used words in the stock market. The concept of bulls and bears is very popular and important because the use of bulls and bears shows both the position and direction of the market.
We read and see many times in news and articles that right now Bulls run or Bears run is going on in the stock market, so as a good investors we should be aware of all the terms about the stock market. If the market is going up, the market is said to be bullish. And if the market is said to go down, it means that the market is bearish.
What is Bull Market?
Bull Market, Bull here means bullish. That is, in the language of the stock market, those who play fast are called BULL. This is the time when the country's economy is doing well, GDP is rising, and unemployment levels are low, which is expected to raise share prices and indices. And it instills confidence in investors that share prices will rise.
That is, when there is a buying trend in the shares and its index rises, then it is called a bull market. And in the language of the stock market, the stock buyers are called bulls. Investors take advantage of the market gains and profit whenever the bull market moves.
What is Bear Market?
Bear market, BEAR means Bearish. That is, from the point of view of the market, those who play bearish here are called BEAR. A bear market begins when sellers become more dominant than buyers, also known as a bearish trend. When the stock price continues to decline due to prolonged selling in the market, it is called a bear market or bearish.
This is when the economy of the country is not doing very well, unemployment is very high, the level of GDP is falling, due to changes in the government's policy of controlling prices and economic and industrial policy of the government, etc. At this time investors sell shares instead of buying them. Whenever a bear market happens, the flows of the stocks fall, causing losses to the investors.
What should we do in a Bear market?
Whenever a bear market goes on then people panic and sell good stocks too. A bear market can be triggered by any number of reasons, such as a global recession, a pandemic, or a high inflation rate. At the time of a bear market, you should be patient and take a wise decision.
With this, we would like to share a quote with you: "The biggest risk of all is not taking one." — Mellody Hobson
No circumstance lasts forever. Sometimes there is a bull market and sometimes there is a bear market. Whenever the stock market falls, this is not the time to be afraid, but one should consider this time as an opportunity. In a bear market, you get the opportunity to buy many fundamentally and financially strong stocks at a discount. At this time, there is an opportunity to buy shares of many Blue-chip and Multibagger companies at low prices. As we said above, no situation is everlasting, there may be a bear market going on right now, but at some point, a bull market will also come.
Frequently Asked Questions (FAQs)
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