Bear market

In a financial market the bear market is said to be a condition in which maximum of the stocks as well as overall stock indices are making lower lows. Bear market is said to be an inappropriate period for making any stock investing but with strict discipline and proper strategy one can still easily make money through stock trading.

Bear market is much played with the sentiment of economy. Any recession or possibility of slowdown in economy gives rise to bear market and this period is worthless for making any short term or mid term stock investing, however one can take long term view for stock investing by finding out excellent stock which can show strong growth potential even if the economy is in recession stage.

In bull market there could be a significant correction which only could be called as short term “stock correction” but it can’t be called as bear market because the tendency of stock which are corrected bounce back immediately at the same pace and again resumes their bull trend.

Unlike the bull market bear market is very harmful for stock investors as it becomes a very difficult task to make out perfect stock for stock investing which will give high returns.

Bull Market

What is bull market?
Bull market is a condition in stock market where maximum of stocks make all time highs along with the index and this phenomenon continues for many days, weeks, months and even years. As long as the overall main index of stock market is making new highs one can easily call it as bull market. Maximum of the stock investors rush in for stock investing in bull market.

It is having said that no one can make out or predict exactly how far the market remains in “bull” stage but as long as overall indexes and maximum of stocks are making new highs it gives out a clear indication that market is in bull stage. It also does not mean that bull market has no correction and no stock can make news lows but companies (stock) which are showing bad performance in terms of their year-on-year or quarter-on-quarter profit margin performance are beaten down significantly and companies which are showing high growth potential are preferentially given thumbs up.

In a secular long term Bull market there can be many small bear market which can last only for few days or few weeks or few months and this may be mainly due to some external factor affecting the stock market but overall the bull market resumes its upward move again and makes its new high.

Maximum of the stock traders as well as stock investors make significant money in bull market through stock trading and stock investing.