Profit From Bull And Bear Runs

Bull and bear runs describe the current state of the stock market. Bull runs refer to good market value and lots of selling activity while  bear runs is synonymous with depreciating market value. If you keep your eyes open and keep your finger on the pulse of the markets, you can survive a bear run at the same time make a fortune during a bull run.

When the stock markets go through a bull run, the typical notion is that the market is on an upswing. Your stocks will fetch a high price now.  You will then be subject to the usual  dilemma: should you hold on to the stock or worry if it would end up below the price you had actually bought it for?

What is the wisest thing to do in this case? I’d say sell a part of your shares and hold on to the rest. That way you stand to gain when the market corrects itself.

When the stock market is in a bear run, things will naturally look  bleak. This is the period for you to be cautious. However don’t panic when the prices of your shares fall. Just be watchful.  People usually sell their shares in a bear market because they fear the worst. This hits the market fortunes badly. If indeed the prices of your shares of stocks spiral down steeply, it would be advisable to sell them off. But it’s not wise to just entirely throw away everything.

Is there a way to use the bear runs to your advantage? In fact there is indeed a way to benefit from the bear markets. There could be stocks which you wanted to buy earlier but cannot because they were priced too high. During the bear runs, these may have come down to a reasonable level. Now is the time to buy them. You can then wait for the stock market to return to a stable run. In that time, your stock investments would have gone up in value.

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