The stock bear market is a common market phenomenon, and only by mastering the coping strategies can the losses be reduced. Understand the causes of the stock bear market and look for suitable investment opportunities. The following small series brings the meaning of stock market bear market and bull market, which is of great benefit to you. Let's have a look.
What do bear market and bull market mean respectively in the stock market?
Short market, also known as bear market, refers to the securities market with a long-term downward trend in price. The general trend of price changes is a continuous decline, which is characterized by a sharp decline and a slight increase.
Bull market, also known as bull market, refers to the long-term upward trend of the securities market. The general trend of price changes is rising, which is characterized by ups and downs.
The main difference between the two is that the bear market share price shows a long-term downward trend, while the bull market share price shows a long-term upward trend.
The reasons for the formation of short market can be divided into three stages:
The first stage is the "delivery" period.
Its real formation is the last stage of the last bull market. At this stage, far-sighted investors realized that the surplus of enterprises reached an abnormal high point and began to speed up the pace of shipment.
At this time, the turnover is still very high. Although there is a tendency to decrease gradually during the rebound, the public is still keen on trading at this time, and it is only beginning to feel that the expected profit has gradually disappeared.
The second stage is the panic period.
People who want to buy begin to shrink back, and people who want to sell are eager to get rid of it. The downward trend of price suddenly accelerated to almost vertical level, when the proportional gap of volume reached the maximum. After the panic period, there is usually a long second rebound or lateral change.
The third stage includes selling those who lack confidence.
In the third stage, the downward trend did not accelerate. "Low-priced stocks with no investment value" may have fallen off the rising part of the previous bull market in the first or second stage. Stocks with better performance continue to fall, because the holders of such stocks are the last to push confidence.
In this process, the final decline of the short market is concentrated on these stocks with good performance. The short market ended with frequent bad news. The worst has been predicted and realized at the stock price. Usually before the bad news comes out completely, the short market has passed.
What do bull and bear markets mean?
Stock bull market is a special term to predict the rise of stock market and the positive and optimistic market prospect, while big bear market is a special term to predict the decline of stock market and the pessimistic market prospect.
The bull market signs of stocks specifically include: holding more stocks with rising costs than stocks with falling costs; When prices soar, the total stock market turnover is extremely high, or when prices fall, the total stock market turnover is low; Enterprises buy their own stocks in large quantities, reducing the total stock market in the market; The stock market of large enterprises has joined the ranks of depreciation, indicating that the price of China stock market is close to the bottom; Recently, a large number of short selling marks a long-term stock bull market; The stock exchange has reduced the proportion demand for lending investors' own funds, so that they can also put more funds into the market; The government reduces the statutory reserve ratio of banks; Insiders, managers, directors and major shareholders compete to buy stocks.
Folding has a big bear market.
The signs of a bear market are: the stock price rises slowly; The continuous decline in bond prices has attracted many stock investors. Due to the attraction of the previous stock price rise, a large number of brokers flooded into the market to speculate, indicating the coming of the big bear market; Investors have turned from risky stock prices to safer bonds, which means that pessimism about China stock market has increased; Enterprises need short-term funds and borrow a lot, which makes the short-term interest rate equal to or even exceed the long-term interest rate, which makes the company's profits fall and the stock price fall. Public utility companies are in great need of funds, and their share prices are often ahead of other stock markets, so the decline of their share prices can also be regarded as a precursor of the whole China stock market.
There are many reasons for the existence of bull market and bear market in domestic stocks, which can also be divided into two categories: important links and technical roots.
Important links: refer to other economic and political sources other than China stock market. This root cause can usually make great changes in the stock market. Many investors or speculators make a lot of money, while others lose everything.
Why are some stocks called bear market and others called bull market?
1, bull market.
Signs of a bull market mainly include:
① There are more kinds of stocks with rising prices than those with falling prices;
② The total trading volume of stocks is high when the price rises or low when the price falls;
(3) A large number of enterprises buy back their own stocks, resulting in a decrease in the total number of stocks in the market;
(4) The stocks of large enterprises have joined the ranks of devaluers, indicating that the stock market price is close to the bottom;
(5) A lot of short selling in the near future indicates a long-term bull market;
⑥ Securities companies reduce the requirements for the proportion of their own funds for lending investors, so that they can have more funds to invest in the market;
⑦ The government reduces the statutory reserve ratio of banks;
Today, insiders (managers, directors and major shareholders of enterprises) compete to buy stocks.
It's a bear market now.
Bear market signs mainly include:
(1) The stock price rose slowly;
(2) The sharp drop in bond prices has attracted many stock investors;
(3) Due to the attraction of the previous stock rise, a large number of stock speculators poured into the market to speculate, indicating that the bear market is not far away;
(4) Investors switch from riskier stocks to safer bonds, which means an increase in pessimism about the stock market;
⑤ Enterprises are in urgent need of short-term funds and borrow a lot, which leads to short-term interest rates equal to or even higher than long-term interest rates, which reduces corporate profits and lowers stock prices;
Public utility companies have a great demand for funds, and their share prices are often ahead of other stocks, so the decline of their share prices can be regarded as a precursor to the bear market of the whole stock market.
Which stocks will rise in a bear market?
1. Blue chips are stocks with good performance, which means that listed companies have good performance and high profits. Such companies will be favored by investors, and everyone is willing to buy their shares.
2. Sub-new shares are called new shares on the first day of listing and sub-new shares on the second day. These stocks have a high degree of speculation, and their share prices are not very high, so there is a good room for appreciation.
3. Anti-falling stocks are stocks that can withstand falling in a big environment. For example, in a bear market, 9 stocks of 10 fall, so the stocks of 1 are definitely interesting.
4. The stocks of future dominant enterprises refer to those companies with guaranteed performance in the next three years, rather than the dominant enterprises that are well known to the public at present.
5. Dark Horse shares, when the high-quality opportunity performance abandoned by everyone gradually blooms and is concerned by the market, the increase of dark horse counterattack is even greater, and it is easier to create excess returns.
6. Oversold stocks refer to stocks that have fallen sharply, because oversold stocks will rebound higher when the stock market rebounds. The more they fall, the greater the increase when they rebound.
7. Stocks with good development prospects, the company has stable operation and bright development prospects, which are favored by many people, such as stocks with favorable policies for the company's business.
How to judge whether the stock is in a bear market stage?
If you want to judge whether the current situation is a bear market or a bull market, you can look at it from these two angles. In fact, it is generally divided into two aspects: basic and technical.
First of all, we can judge the market situation from the fundamentals, which show the macroeconomic operation and the operation of listed companies. Under normal circumstances, we can understand it after reading the industry research report. Secondly, from a technical point of view, the volume-price relationship, volume-price ratio, turnover rate, K-line combination and other indicators can be used for our reference to make a general judgment on the market situation.
For example, if there is a bull market and there are far more people buying stocks than selling stocks, then the K-charts of many stocks will have a great increase. On the other hand, if it is a bear market, the number of people selling stocks is obviously higher than the number of people buying stocks, then the K-risk maps of many stocks have dropped greatly.
If you enter the market one after another at the end of the bull market, you are likely to buy at the high point of the stock and get stuck, and the easiest time to make more money is to enter the market at the end of the bear market.
Therefore, as long as we can grasp the inflection point of the male cattle, we can achieve low entry and high exit, thus earning the difference! There are many ways to analyze the turning point of bulls and bears. It is suggested to use the following turning points to capture artifacts and get trading opportunities with one click.