Bull and Bear market strategies

[Oluwasegun purpose]

The stock market often fall under the conditions of so-called bull and bear markets.. Intelligent investors are well familiar with the conditions of both and known exactly what to do...

the names of the two market conditions are used in order to imply the effects that this market may have on the value of your stocks......


the stock's market hides it's risks in terms of devaluating your stocks when the price are down.....however an educated investor should be familiar with the differences between a decline in the market and a general general problem into the stocks ...

There are many example which show that even under the conditions of a bear market some type of stock perform well..... the same is true under the condition of a bull market..on the other hand some stocks do really suffer from such extra-ordinary market conditions..

Why is that? the major reason for this is that stocks don't respond equally to the rises and falls of the market ...

if you have done and educated investments that was based on thorough preliminary analysis you will be in an advantageous position relative to an investor that has invest in stock just like that...

the differences between a trader and an investor is that the latter invest in a particular company stock because he likes the company and its activities.. he or she is well informed and attached to the company..that is why in bad market conditions in investor will be able to tell whether the decreasing prices in accordance to the decreasing market trend there is a problem within the company that drives the price down..


What to do

Under a down market you have several options.... One of them is to sell immediately in order to minimise your losses.another option is to let the market work its way through the problem with no action from your side.. the third option is to benefit from the stock's decline and add some more to your profolio.. but this should be done only if you don't perceive that there is something wrong with the company that has led to the stock decline.

a bull market may make your stocks price increase from which you can benefit in one way or another.. however. the possibility of your stop becoming too costly always exist since after the up a down in the price may follow, which may be off and extreme speed

 

[Oluwasegun purpose]

Never forget that it is important to base your decision on knowledge not on feelings. This means that being educated about the company and the industry from which your stocks come from, the market conditions under which you operate will be of small important to you...

So under bull market conditions you can do one of the following order to counteract the potentially negative effects...

First of all you can sell it but if the shares and needs the money to repurchase the stock when its price fall again.... Secondly you can leave the market works it ways through the imbalance....thirdly you can t take dvantage of the higher price and sell the stock for a profit...

never forget that a market correction we follow that may push the price of your stuff below its initial level.


A useful strategy to counteract the negative effects of a bull market is to sell a portion of your stocks at the current bull market price, which will be greatly higher than the one at which you have purchased the stock..after the market correction is that place you can use the money you have acquired from the bull market since to purchase shares at the current lower price....as a result you will have more stuff than you used to have before the bull market... You have not only avoid losses but also have swedish your average cost per share.