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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.

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