What is a Bull Market?

January 12th, 2021 [eBook] Ultimate Guide to Swing Trading We just got access to a free eBook that details a proven, simple formula for swing trading successfully and wanted to pass it along...[Just tap here to get your copy now]( What is a Bull Market? A bull market is the opposite of a bear market. They usually occur in a period of optimism, investor confidence and expectations that market growth will continue for an extended period of time. There is no specific and universal metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline. Characteristics of a Bull Market Investors generally experience a bull market when the economy is strengthening or when it’s already strong. During this time, investor confidence is likely to climb. If you recall the four phases of a bear market, you will remember that the end of a bear market is usually indicated through low stock prices and good news about the market. Investors take advantage of that good news or expected growth and start to buy stocks. As investors start to buy stocks, the stock prices begin to climb. Bull Markets vs. Bear Markets While there’s no real way to indicate a bull market or a bear market, investors should notice that bull and bear markets often coincide with the economic cycle. If the economic cycle is in expansion, or has reached a peak, then the stock markets may be heading for a bull market. If the economic cycle is in contraction and has hit a trough, the stock market is likely going to enter a bear market. Because public sentiment about future economic conditions drives stock prices, the market frequently rises even before broader economic measures, such as gross domestic product (GDP) growth, begin to tick up. Likewise, bear markets usually set in before economic contraction takes hold. A look back at a typical U.S. recession reveals a falling stock market several months ahead of GDP decline. Tips4Traders For more awesome tips, news and information, visit our site...[Register now]( This email is a paid advertisement. It is for a product or service that is not offered, recommended or endorsed by Tips4Traders.com and neither the company nor its affiliates bear responsibility or control over the content of the advertisement and the product or service offered. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Tips4Traders.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Tips4Traders.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. --------------------------------------------------------------- This email was sent to {EMAIL} by Tips4Traders 495 Town Plaza Ave | Ponte Vedra | 32081 [Forward to a friend]( | [Unsubscribe](