Although some investors can be "bearish," the majority of investors are typically "bullish." The more diverse that you become as a trader the better. Up, down or sideways, there's a strategy you can use to turn a profit. Any time that stocks enter a period where they have declined by 20 percent can be considered a bear market. Real-Time Trade Alerts – Posted Several Times Per Week. The actual origins of … These levels are probably the most important thing to pay attention to in trading bullish vs bearish strategies because they are your first line of defense when trading or investing. Eventually they'll be right, but how long will they be wrong for? What To Do: Bullish vs. I check these charts a couple times a month to see what investors are "feeling". A bearish market … In a bear market, however, the chance of losses is greater because prices are continually losing value and the end is often not in sight. A bear market exists in an economy that is receding and where most stocks are declining in value. As a result, the term “bear” traders stuck. The bears can seem scary in the bullish vs bearish fight. A bear trap denotes a decline that induces market participants to open short sales ahead of a reversal that squeezes those positions into losses. It’s important to remember that a bull market is characterized by a general sense of optimism and positive growth which tends to catalyze greed. If you're a long term investor reading this you're probably nodding along. 5. Measure ad performance. In a bear market, share prices are continuously dropping. A secular market trend is a long-term trend that lasts 5 to 25 years and consists of a series of primary trends. Also, read further below to get some takeaways regarding market sentiment. However, they can also see this is a sale to load up on more shares of their favorite value stock (Warren Buffet I am looking at you!). BullishBears.com, PO BOX 83 Mansfield Center, Connecticut 06250 United States, DISCLAIMER: We’re not licensed brokers. In addition, investors may benefit from taking a short position in a bear market and profiting from falling prices. It's simple to go long, whereas going short (being a bear or bearish) is a lot more challenging. When buyers outweigh the sellers they drive prices higher. We teach all types of stocks as well as the different options strategies. The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. A bull market is typically defined as a time period where prices are steadily increasing whereas a bear market is defined as a period when the market … If they only ever passed or only ever run the defense would always be able to stop them. However, the ebb and flow of the bull vs bear is essential to a healthy stock market. This happens because people are afraid of putting money in the market … That way you can learn which strategies work best within each, respectively. In sum, the decline in stock market prices shakes investor confidence. A bull market is a market that is on the rise and where the economy is sound; while a bear market exists in an economy that is receding, where most stocks are declining in value. Many traders and investors only know how to buy and sell stocks. And as an investor, the direction of the market is a major force that has a huge impact on your portfolio. Be prepared to lose money, sometimes, there is always so loss with trading or investing. If a trader believes the price will rise they are bullish. If the online trader’s longer term outlook is bullish… During a bear market, the economy slows down and unemployment rises as companies begin laying off workers.. You have to build a playbook if you are a trader or investor. Day Trade Watch List – Updated Daily by 9 PM EST! Select personalised ads. The Daily Routine of the Bullish Bears Team, we'll teach you all of this in our trading community. For example, if APPL shares have made a drastic move down from $200 to $100 after an earnings call, one may say that the stock has been bearish for the week. It's sort of like playing football. When going long a stock you are bullish. While the most common use of the term is in the stock market, these terms do not necessarily apply only to stocks. When a trader says he is bullish on Apple Inc. (AAPL) shares, it means the trader thinks AAPL shares will move up in the future. The Bearish Market The bear market, or a market that is “bearish” describes a market decreasing in value. The foundation of trading is built by investors, hedge funds, banks and traders who are either bullish or bearish. This is why support and resistance is so important. Bearish Markets. Take our online trading courses to learn bullish vs bearish trading strategies. The hours in between are when traders typically go to lunch and you're trading against computer algos. As a result, prices are more expensive and PE ratios get out of wack. This decline in profits directly affects the way the market values stocks. As a result, prices are more expensive and, get out of wack. That doesn't mean that stock prices never have down days. Sometimes a market may go through a period of stagnation as it tries to find direction. Or even how to buy puts, or sell spreads. Read on... Thankfully the bullish vs bearish battle happens no matter what trend is in place. If an online stock trader owns or is long 100 shares of a stock, the trader may decide to protect this investment during times of market uncertainty or increased market volatility. The stock market is a battle between the bulls (long buyers) and the bears (short sellers) hence the phrase bullish vs bearish.