Article 221, Day 45, Bear Market December 14th, 2012 by Chris Pottorff | Category: Basics There are two types of situation in financial trading market. Bear market condition and bull market condition. Bear Market is a phrase used by market and its investors when the markets are on the falling spree, i.e. to say prices of securities continue to fall day after day. When this is the market condition it gets clearly reflected in confidence (the lack of it) of the investors when charts are studied. Besides negative investor sentiments, other major reasons for bearish market could include fall in corporate earnings and P/E multiples. Bear market makes the traders turn pessimistic and as a result investments are affected, and the market nose dives; when markets take a hit; investors lose confidence and run helter-skelter and this hap hazard behaviour with regard to their investment on the part of investor affects the market… down trend takes the front seat and dominates the market scenario; this situation is generally followed by a weak and gloomy economy; lower highs and lower lows make the high points of such a market; steadily rising market becomes a rare scenario. This type of market that is the bear market is suitable for trend trading, by going short. Traders are advised to avoid going long in a bearish market. Even if trader enters the market at a wrong time; in spite of it, a short trade always makes for a better move. Bear markets can last from a few months to sometimes stretching to even several years. Bear market sentiment ends when economic scene as a whole starts to look bright and positive, and when this continues for a while prices begin to show signs of rising and market sores and the bear market patch comes to an end. You can find all relevant FAQ in regards to the above article here https://facebook/OnlineFXAcademy kiryaforex.blogspot/ fxkeys/bear-market/
Posted on: Sat, 11 Oct 2014 12:54:43 +0000
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