What is Bear Market ?
Bear market emerged in London in the 18th century and spread all over the world with the frequent use of the US. Bear Market is the phrase “to sell the skin without catching the bear month. The bear market is typically used when the market is pessimistic, with the expectation that prices will not return to normal within a short period of time and that there will be a steady decline in the long term. To be able to say that a monetary good is in the bear market, that commodity must be in decline.
Although the bear market cannot know how long it will last, it is expected that prices will decrease in a long time. Demand for the goods in the bear market is decreasing. As the demand for the goods decreases, the prices are not automatically sold and the prices fall automatically. In order to be able to talk about the bear market, there should be a 20% decrease from a high point. There is another market that is used in the bear market, which is the markets bull market Ay. The bull market is also the opposite of the bear market. In the bull market, there is a trend that prices will increase for a long time. These markets, which are used together with each other, are also heavily involved in stocks and commodities, and the future direction of prices can be determined. When we look at the US stock market news, we see that these phrases are constantly being used.
How to Tell the Bear Market?
If we want to explain the formation phase of the bear market, first of all, investors start to think that the prices in the market are approaching to the top or they are at the top. That’s why they start selling.
With the sales that started in the first place, other investors also see the market starting to fall slowly and become a panic. With the resulting panic air, sales start to accelerate, and as the sales accelerate, prices also show larger decreases.
In the last stage, prices are considered to be too low and cheap. Investors who want to take advantage of this cheapness, by purchasing goods that have fallen to the price of the market revives. The idea that bad progress is over now is dominated by the market, so buyers can reconsider the market.
Each market tends to bear in some time periods and sometimes tends to bull. It is impossible to have both at the same time. Because one is an increase and the other is a downward trend. However, there are also periods of horizontal and horizontal fishing. There is a constant movement in the horizontal course called fish tendency and there is no extraordinary fluctuation in prices.
Bear Market and Stock Exchange
In addition to all these, the Bear and Bull Markets, which are used by the stock market and forex market, are frequently used by investors and are expressed by stereotypes such as sıklık bears will dominate the market an or en bulls will create a break in prices. In addition, terms such as the Bear Market or the Bull Market are the expressions that an investor needs to know. It is necessary to have a certain experience to evaluate whether the market trend is a Bear Market or a Bull Market.
The value of things to invest can change continuously. For this reason, the investor’s agenda should be constantly monitored and when it is possible to foresee when the withdrawal occurs. For example, in the bullish market, fluctuations are not very long. The fluctuation on the stock market is longer than forex. Forex may have fluctuations in prices on a daily or even seconds basis.
Although it is hard to sense these fluctuations in the short term, it is not difficult to see them with technical analysis. However, the Bear Market is longer than the bull. One of the ways to make profit in the bear market is to include things to be valued in the future after a solid market analysis and follow-up, and as the prices start to rise after the fall, as prices start to rise, and make a profit from the difference.