Learn more about these terms of economic recession. Bull markets take place when the economy is strong. The demand for stocks rise in bull markets. Find out the advance or decline line in the market and these terms on decline line. A declining line shows correction during a period when markets continue to rise. If the line rises for several months and the averages have moved down it is a positive divergence that shows that there is a start of a bull market.The bull market and bear market are opposites. The economic cycles consists of four phases. Economic expansion is indicated by bull market starting because bear markets set in before economic contraction begins. There are risks involved in the strategies when you need to make profits in the bull and bear market. Markets trade in cycles. There are many ways of making profits in the bull and bear markets.
Purchase the stocks in the bull market when prices are low and wait for prices to rise before you sell them. Buying and holding needs an investor who is confident in their instincts that the prices of the stocks rise.
Some will go for increased purchase and hold because it is almost the same as buy and hold. Increased buy and hold has more risks than buy and hold. The investor observes the rate of increase of the price of their stocks but instead of selling like in the buy and hold they continue buying as they wait for prices to shoot higher for them to sell.
Checkout these terms about the retracement period for better understanding. There will be shorter periods of small dips in prices and period that the price trend steadily goes upward.
Full swing trading in the bull and bear markets involves the use of short-selling and other techniques to get maximum gains as shifts occur in the bull or bear market..
Read more about these terms of put options approach of selling in the bear market. You will be charged a premium in the bear market for the put options. A put option increases in value when the prices of the stock fall; therefore read these terms of put options.
Use a short exchange-traded fund (ETF) to trade in the bear market. The short EFTs can also be used to hedge long positions against downturns in the market for the bear to make a profit.
You buy the stocks at a low price and sell them at a higher price.
The transaction costs and operating expenses are low when you use long EFTs.