Wednesday, November 12, 2008

Bear vs. Bull Market

A bear market means that the market is generally trending down and you'll want to be shorting the market. A bull market means that the market is trending upward and you'll want to be long in your trades. 

A visual I learned in high school economics to help remember which means up and down is to envision the way each animal attacks - the Bear attacks with a downward swipe and the Bull rushes and attacks with an upward stab. Easy!

Swing-Trade-Stocks.com has a great article on how to determine the market trend.