Overview

In the stock market, there are two signs that you have to look for: the bull and the bear. In this article, our focus is only on the bull part. So when are stocks categorized as relating to bullish sentiment? What is a bull market? It occurs when the stocks are going up.

A bull market is a sign that the economy is growing and unemployment rates are declining. Therefore, this gives investors more confidence to buy more stock. However, the duration of a bull market is not constant, it can last for months or sometimes even years.

What Is A Bull market?

After knowing the overview of general sentiments of the stock market, now you have a basic knowledge of a bull market. Let’s dive a little deeper to understand what is a bull market?

A bull market occurs when the stock market index increases by almost 20% from its recent low value. In a bull market, stock prices progressively rise, and the person’s confidence hikes. Thus, this leads to an increase in stock prices. It happens when investors believe that the economy will continue to grow and that their investments will yield a high return. As a result, the investor community is optimistic about the economy.

How To Take Advantage Of A Bull Market?

Now that you know what is a bull market, the next question that will arise in your mind is how to take advantage of a bull market. In a bull market, prices are expected to rise. You must keep an eye on the stock market at all times. And then make the investment when the time is right.

Always remember to sell your stocks when stock when the prices are high. As an investor, it’s significant to buy early in a bull market to take full advantage because this will allow you to profit from rising prices. You can also follow the buy-and-hold strategy. It refers to purchasing security and then holding it until the price reaches its peak.

People believe that stock prices will always keep going up, and as a result, they keep on investing more by purchasing even more stocks. When the prices rise, they take benefit of this greed and sell before it starts to fall. You will have profit if you buy when the prices fall and sell when the prices are high.