Recognizing Bearish Signs in the Stock Market
A bear market can be described as when there is a downward trend in the overall activity of the stock market.
There are so many activities that go on in the stock market and when there is a continuous fall in prices of a stock over a time, we can rightly say that the market is bearish.
Immediately the bear market sets in, there is a change in the trend of the market.
There is a sudden collapse in the prices of stock in the stock market.
Automatically, the market changes from a bullish market to a bearish market.
The bear market if fully understood, could be a very good period for a wise and intelligent trader to make fortune in the stock market.
One can always predict, well before any event, that a stock market crash is going to happen.
There are certain events which happen prior to the crash, which can actually assist us to predict when the market is about to be bearish.
The events that can enable us recognize a stock market fall is as follows: WHEN MARKET IS OVERBOUGHT This is a situation where there are so many investments into the stock market by people over a particular time.
Stocks start to lose value.
At this time, the market is heavy and the same investors after sometime would want to start selling this stock.
And when most traders are selling instead of buying, the market crashes.
ECONOMIC RECESSION How vibrant a particular economy is, can be used as a tool to predict a sudden change in the trend of any market.
When there is an over-all recess in the economy of any place, there tends to be a market crash in the prices of stock.
Hence, appropriate indicators must be put in place to enable trader identify when there is a recess in the economy.
MASSIVE PROFIT TAKING Generally traders may want to sell off their stocks as soon as the meet their set goals of acquiring such stocks.
When these traders en mass are ready to dispose their stock, it triggers of a bear market.
Watch out and observe when there is a massive effort by investors to sell off their stock because this is an invitation to a bear market.
DISASTER Disaster natural and unnatural can really affect the trend in the activities of the stock market.
This can greatly affect activities in the market and it is shown immediately by a total collapse in the prices of stocks in the stock market.
Hence, investors are usually advised to watch out for such disasters as it is a sign for a bearish market.
A typical example is the September 11 terrorist attack in U.
S.
Immediately after the attack, there was a total collapse in the activities of the stock market.
FALSE REPORT EARNING These is a situation that occur when some blue chip companies post false earning during their end of year in other to increase the value for their stock.
When the do so, some investors see it a good stock to invest in, hence there will be scramble for that particular stock.
Eventually, when the truth is known, there is a total and continuous downward crash in prices of the stock.
There are so many activities that go on in the stock market and when there is a continuous fall in prices of a stock over a time, we can rightly say that the market is bearish.
Immediately the bear market sets in, there is a change in the trend of the market.
There is a sudden collapse in the prices of stock in the stock market.
Automatically, the market changes from a bullish market to a bearish market.
The bear market if fully understood, could be a very good period for a wise and intelligent trader to make fortune in the stock market.
One can always predict, well before any event, that a stock market crash is going to happen.
There are certain events which happen prior to the crash, which can actually assist us to predict when the market is about to be bearish.
The events that can enable us recognize a stock market fall is as follows: WHEN MARKET IS OVERBOUGHT This is a situation where there are so many investments into the stock market by people over a particular time.
Stocks start to lose value.
At this time, the market is heavy and the same investors after sometime would want to start selling this stock.
And when most traders are selling instead of buying, the market crashes.
ECONOMIC RECESSION How vibrant a particular economy is, can be used as a tool to predict a sudden change in the trend of any market.
When there is an over-all recess in the economy of any place, there tends to be a market crash in the prices of stock.
Hence, appropriate indicators must be put in place to enable trader identify when there is a recess in the economy.
MASSIVE PROFIT TAKING Generally traders may want to sell off their stocks as soon as the meet their set goals of acquiring such stocks.
When these traders en mass are ready to dispose their stock, it triggers of a bear market.
Watch out and observe when there is a massive effort by investors to sell off their stock because this is an invitation to a bear market.
DISASTER Disaster natural and unnatural can really affect the trend in the activities of the stock market.
This can greatly affect activities in the market and it is shown immediately by a total collapse in the prices of stocks in the stock market.
Hence, investors are usually advised to watch out for such disasters as it is a sign for a bearish market.
A typical example is the September 11 terrorist attack in U.
S.
Immediately after the attack, there was a total collapse in the activities of the stock market.
FALSE REPORT EARNING These is a situation that occur when some blue chip companies post false earning during their end of year in other to increase the value for their stock.
When the do so, some investors see it a good stock to invest in, hence there will be scramble for that particular stock.
Eventually, when the truth is known, there is a total and continuous downward crash in prices of the stock.
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