Trading Stocks Online - Bull and Bear Runs
Bull and bear runs depict the state of the stock
market at the current juncture. Bull run is synonymous
with good market value and lots of selling activity.
While Bear run is synonymous with depreciating market
value.
You can survive a bear run and make fortune in a bull
run if you keep your eyes open and keep your finger on
the pulse of the markets.
When the markets go through a bull run, the usual
notion is the market is on an upswing. Your stocks
will fetch a high price now and the general dilemma
would be if you should hold on to the stock or worry
if it would end up below the price you had actually
bought it for.
In that case scenario, sell a part of your shares and
hold on to the rest. That way you stand to gain when
the market corrects itself.
When the market is in a bear run, things look real
bleak. This is when you’ve got to be cautious. When
the prices fall on your shares don’t panic, but be
watchful.
In a bear market, people sell their shares fearing the
worst and that hits the market fortunes badly. If the
price of your shares goes down steep, it would
advisable to sell them, but just don’t wash your hands
off everything.
You can also use this scenario to your advantage as
the stocks, which were priced too high for you to buy
may have come down to a reasonable level. You can buy
them now and wait for the market to return to a stable
run. When that happens, you would have made a wise
investment.
