June 22, 2025
Bull vs Bear Market: Simple Guide to Meaning, Strategy & Trends
The stock market moves in two main directions: bull markets and bear markets. Knowing the difference is key for smart investing and protecting your money.
A bull market happens when prices of stocks and assets go up over time. Investors feel confident, the economy grows, and there’s a lot of buying. It’s a good time for long-term investments.
A bear market happens when prices drop by 20% or more. It usually comes with economic slowdown and fear in the market. Investors may sell off assets and turn to safer investments.
Feature | Bull Market | Bear Market |
---|---|---|
Price Trend | Rising | Falling |
Investor Mood | Optimistic | Fearful |
Economy | Strong | Weak or slowing down |
Market Type | Smart Moves |
---|---|
Bull Market | Buy stocks, hold long-term, invest in growth |
Bear Market | Buy gold, defensive stocks, use stop-loss |
Understanding market cycles helps you stay ahead in stock trading and grow your wealth in any condition.
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