What causes bull and bear market

What causes bull and bear market

What causes the bull and bear market?


  1. There are two types of players in the stock market
  2. Strong bull market starts when the recession at its peak
  3. The bull market continues when the country inflation rate is higher than normal
  4. Try to find the logic
  5. Unless you find the logic by yourself you will find the stock market difficult
  6. The stock market price is controlled by the supply and demand theory
  7. Strong players always prefer the perceived value over intrinsic value
  8. Strong players are specialized in accumulating and distributing stocks

 Strong Players

  1. Strong Players and weak players
  2. Strong players do not allow themselves in poor trading positions
  3. Strong players not afraid by sudden down move or up to move they are confident with their positions
  4.  Strong players are books their loss quickly if their trade went wrong
  5. Strong players losses are small and profits are big

Weak Players

  1. The new trader in the stock market is the weak player
  2. They don't book their losses quickly and hope for the price to move in their direction
  3. Weak players frequently cut their position when volatility rises
  4. They don't have enough capital 
  5. Weak players start buying the stocks when the market at the top
  6. Weak players start selling their stock when the bear market ends and trend reverse
The bull market starts when strong players accumulate all the floating stock in the market at cheaper rates from weaker players. When weak players don't have anything to sell in the market bull market starts.

The bear market starts when strong players start distributing their stocks to weak players with the help of tv anchors and experts when strong players end up selling all the stocks at the profit bear market starts.


Conclusion: Strong players start buying from weak players at the end of the bear market
Strong players start selling the stock when the market makes its tops and starts distributing their stock to weak players.

Post a Comment

0 Comments