Myles Ntokozo Ndlovu - All You Need to Know About Bulls and Bears
When we talk about the stock market, bulls and bears are not just part of the animal kingdom, they are different situations of the stock market. As an investor who is a beginner, it is important to understand the bull and bear market if you are to invest. Without a proper understanding of such a market, you are likely going to face huge losses and take unnecessary risks.
Currency Funds Management Expert, Myles Ntokozo Ndlovu, helps to explain all that you need to know about a Bull and Bear Market.
What is a Bull Market?
A Bull Market is when the buyer is optimistic about a future rise in the prices of the stock, and the sharing economy of the country is already doing well. There is the expectation that the prices of the shares will only rise further in this sort of prosperous economic climate.
What is a Bear Market?
This is the market when the buyers are pessimistic about the rise in prices of shares and expect the prices to go down. In this case, the sellers outnumber the buyers, and they sell their shares instead of buying them as they are expecting a recession.
What are the factors which cause a bull market or a bear market?
Rising economies and high-income levels are the base for any bull market. A condition gives rise to a bull market when the unemployment level is at the lowest and there is only growth in most of the sectors, and there is a stable economy.
Similarly, if we look at it from the opposite point of view, if the economy is deteriorating and there does not look like there is any potential for immediate future growth, then these conditions give rise to a bear market. In such a situation the economy is unstable and the GDP is also collapsing. The totality of the condition here leads to the investors thinking that the market is not worth the risk. As a result, they cut their losses and sell off the shares at the minimum loss to prevent an expected future loss.
How can a bull market or a bear market be predicted?
When you are in the market to invest, you must keep your eye out for not only what is happening at that moment, but also, what may happen in the near future. For this reason, it is important to be able to predict the direction in which the market is going.
How to do this? There are several methods.
The easiest method is the business cycle. There is a repetition of the same cycle in business. Over the years, the same thing happens again and again. If the prices are falling in the current market scenario, the share prices will rise again soon making it a bull market. There are other ways to know, such as if there is war, the country will produce more jobs. If there is a chance of a crisis in the International scenario, there will be a bearish market.
Bad news about the company will also create a market which is more bearish. Good news will make the market more bullish.
For more details please visit our website:- https://medium.com/@mylesntokozondlovu
Currency Funds Management Expert, Myles Ntokozo Ndlovu, helps to explain all that you need to know about a Bull and Bear Market.
What is a Bull Market?
A Bull Market is when the buyer is optimistic about a future rise in the prices of the stock, and the sharing economy of the country is already doing well. There is the expectation that the prices of the shares will only rise further in this sort of prosperous economic climate.
What is a Bear Market?
This is the market when the buyers are pessimistic about the rise in prices of shares and expect the prices to go down. In this case, the sellers outnumber the buyers, and they sell their shares instead of buying them as they are expecting a recession.
What are the factors which cause a bull market or a bear market?
Rising economies and high-income levels are the base for any bull market. A condition gives rise to a bull market when the unemployment level is at the lowest and there is only growth in most of the sectors, and there is a stable economy.
Similarly, if we look at it from the opposite point of view, if the economy is deteriorating and there does not look like there is any potential for immediate future growth, then these conditions give rise to a bear market. In such a situation the economy is unstable and the GDP is also collapsing. The totality of the condition here leads to the investors thinking that the market is not worth the risk. As a result, they cut their losses and sell off the shares at the minimum loss to prevent an expected future loss.
How can a bull market or a bear market be predicted?
When you are in the market to invest, you must keep your eye out for not only what is happening at that moment, but also, what may happen in the near future. For this reason, it is important to be able to predict the direction in which the market is going.
How to do this? There are several methods.
The easiest method is the business cycle. There is a repetition of the same cycle in business. Over the years, the same thing happens again and again. If the prices are falling in the current market scenario, the share prices will rise again soon making it a bull market. There are other ways to know, such as if there is war, the country will produce more jobs. If there is a chance of a crisis in the International scenario, there will be a bearish market.
Bad news about the company will also create a market which is more bearish. Good news will make the market more bullish.
For more details please visit our website:- https://medium.com/@mylesntokozondlovu
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