How To Make Profits In Bull And Bear Market.
Learn more about these terms of economic recession. They happen when the gross domestic product (GDP) is stable since unemployment dropping increase corporate profits. There is also an increase in the amount of IPO activity. The advance or decline line represents the number of advancing issues divided by the number of declining issues over a given period. A declining line shows correction during a period when markets continue to rise. If the line rises for several months and the averages have moved down it is a positive divergence that shows that there is a start of a bull market. Falling prices characterize the bear market while the bear market shows rising prices. The phases of economic cycles are expansion, peak, contraction, and trough. Economic expansion is indicated by bull market starting because bear markets set in before economic contraction begins. There are risks involved in the strategies when you need to make profits in the bull and bear market. You need to understand which market you are in. There are several strategies for making profits in the bear and bull market.
Buy and hold strategy in the bull market if profitable because the investor buys the stocks at low prices and sell them at when prices rise. Buying and holding needs an investor who is confident in their instincts that the prices of the stocks rise.
Increased buy and hold somehow similar to buy and hold strategy. Buying, and holding has fewer risks than increased buy and hold technique of trading in the bull market. Investors mostly increase their holdings by buying an additional fixed quantity of shares for every price stock that increases.
An investor in the bull market can use retracement additions; hence learn these terms about retracement. It is unlikely that stock prices will only rise in the bull market.
The investor actively uses short-selling, and other techniques to optimize profits are priced in the larger bull market keep shifting; therefore, learn these terms about short-selling.
The future date beyond which the seller cannot be allowed to sell the shares is called expiration date. Investor has to pay a premium for the options. You can sell the stock or the put option at a profit in the bear market if the stock prices fall below the put option.
The short EFT is also called inverse EFT in the bear market, and you can learn these terms about short EFTs. The short EFTs can also be used to hedge long positions against downturns in the market for the bear to make a profit.
Long positions is also a great way of making profits in a bear market; therefore, these terms of long positions will help you undestand.
Here is more to read about these terms in long EFTs.