The terms ‘Bull market’ and ‘Bear
market’ are derived from the way those animals attack. Bulls are supposed to be
aggressive and attacking while bears would wait for the prey to come down.
BULL MARKETS
When the prices of stocks moves up
rapidly cracking previous highs, it is assume as a bull market. If there are
many bullish days in a row, it is considered as a ‘bull market run’.
Technically a bull market is a rise in value of the market by at least 20%.
BEAR MARKETS
A bear market is
the opposite of a bull market. When the prices of stocks moves crashes rapidly
cracking previous lows, it is assume as a bear market. Generally markets must
fall by more than 20% to confirm that it’ a bear market.
STAGS
This is another
category of market participant. The stags are not interested in a bull run or a
bear run. Their aim is to buy and sell the shares in very short intervals and
make a profit from the fluctuation. It’s a daily tussle for stags in
the stock market.
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