Which is more profitable, the bull market or the bear market? Perhaps, when many people see this question, they will immediately give the answer intuitively. Of course, it is the bull market. How can it be possible to make money in the bear market. However, you may only be seeing the symptoms of the problem. If the time dimension is stretched out, the reality is not as imagined, and the results will even be completely different. What is a bear market in the stock market?
Bull markets and bear markets drive upward and downward market trends respectively, and can be used to describe the overall market or securities in individual industries.
Bull market is a technical term that predicts the stock market will rise and the outlook is relatively optimistic; bear market is a technical term that predicts the stock market will fall and the outlook is pessimistic.
Bear market and bull market are both expressions that represent the stock market conditions. A simple understanding is that a bear market means a fall and a bull market means an increase. The so-called "bear market", also known as the short market, refers to a generally bearish market that lasts for a relatively long period of time. The main signs of a bear market are: the rise in stock prices has slowed down; bond prices have plummeted, attracting many stock investors; attracted by the previous rise in stocks, a large number of novice securities traders have poured into the market for stock transactions, indicating that the bear market has arrived. Not far behind; investors' shift from riskier stocks to safer bonds means rising pessimism about the stock market. Bear market and bull market are both forms of expression that represent the stock market conditions. A simple understanding is that a bear market means a fall and a bull market means an increase. How to know whether it is a bull market or a bear market?
To judge a bull market or a bear market, you can judge the bull market or the bear market through the economic environment, that is, the fundamentals, or through technical indicators. In fact, there is no unified standard for judging bull and bear markets. Some technical schools once believed that using the half-year line as the standard, if the index is above the half-year line, it is bullish, and below it is bearish! However, some characteristics of bull markets and bear markets are still very different. Obvious.
When the stock market enters a bull market, the market has the following characteristics:
1. When news that is unfavorable to the stock market appears, such as rising interest rates, corporate performance decline, or even news such as losses, The stock price does not fall.
2. Ex-dividends and ex-rights stocks quickly fill in interest and rights.
3. When good news is reported, the stock price rises sharply.
4. When the market rises, the trading volume increases accordingly. The so-called "volume and price cooperate, and both volume and price combine."
5. Various stocks jump in turn, forming an upward price comparison situation.
6. Investors began to pay attention to net income and dividends, and began to calculate price-to-earnings ratios and cost-to-interest ratios.
7. Investors enthusiastically go to the registration company to handle the transfer and prepare to receive interest, rights, etc.
8. The number of new account openings is gradually increasing.
When the stock market enters a bear market, the entire market has the following characteristics:
1. When unfavorable news or rumors spread in the stock market, the market price drops, which is like a panic and a defeat.
2. Stock prices still fall during the ex-dividend and ex-rights seasons, and investors don’t even want the dividends or rights.
3. When good news spreads frequently, the market price rises weakly or has a limited increase.
4. The half-year line is called the "bull-bear dividing line". If it falls below, it will enter a bear market;
5. A drop of more than 20% from a periodic high can be determined as a bear market. From the peak of 6124 points in the last bull market to 4195 points on October 16, the Shanghai Composite Index fell by 31.4%, exceeding 20% ??for the first time, reaching the decline standard defined by the investment community for a "bear market".
Whether it is a bull market or a bear market, it is a result of the market. Which one is more profitable, the bull market or the bear market?
No matter the bull market or the bear market, they all run on the fluctuation curve. The fluctuation curves of the bull market and the bear market are the same, with both troughs and peaks
Be sure to grasp each moment A period of fluctuation can still make money.
In the bull market, individual stocks also rise and fall, and the stocks you buy may not rise well. There are also daily limits in bear markets, and there are many opportunities. As long as there are fluctuations of big rises and big falls, there will be opportunities to make money. The most fearful thing is that there will be no rise, no fall, no volatility.
The bull market is just an overall upward trend. Lazy stock traders hope to buy stocks that keep rising. But this is just an ideal model. If you really want to make money in the bull market, you still have to buy when the valley is low and sell when the peak is high. To ensure profitability. A bear market is just an overall downward trend, and only lazy people will allow losses when trading in stocks. Smart and diligent people will know how to buy when the market is low and rebound, and sell when it rises, so as to protect profits.
As for obtaining income in the stock market, the editor cannot comment on whether the bull market or the bear market is more profitable, but the bear market is not terrible. Collecting funds and continuing to invest can allow us to obtain cheap chips; the bull market is The main source of our profits, it is more important to stay rational, observe the market, and formulate exit trading strategies in advance.