Bull and bear runs shows the condition of the stock
market at the current juncture. Bull run is like
a good market value and many selling activity.
While Bear run is a reflection depreciating market
value.
You can survive a bear run and earn higher profit in a bull
run if you focus and keep eyes open while keeping your finger on
the movement of the markets.
When the markets experiences a bull run, normally it assumed that
the market is on an upswing. Your stocks
will get a high price now and the general confusion
would be if you may hold on to the stock or worry
if it would eventually fall below the price you had actually
purchases.
When this happens, sell a portion of your shares and
hold on to the remaining part. By doing this, you stand to profit when
the bounces pack and corrects itself.
When the market is in a bear run, things look real
bleak. This is when you have to be cautious. Do not panic when the market
prices fall. Just watch and observe.
In a bear market, people let go or sell off their shares as a result of fear of
the worst events that’s likely to deplete their gains. If the
price of your shares reduces so low, it would
advisable to sell them, but just do not let go everything.
You can also utilise this situation to your advantage as
the stocks, which were priced too high for you to purchase
may have come down to a reasonable level. You can buy
them now and wait for the market to come back to a stable
run. When that happens, you would have made a smart
investment.
