What is a Bullish Market?
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- Updated On:20-Jan-2021
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Short Answer
A bullish market can be a great moment for any investor. A bullish market can be defined as a market condition when stock prices rise for a long period.
Detailed Answer
Two main events occur in a stock market over time, such as bullish market and bear market. The upward motion of the stock value can be compared to the horn of a bull that is how the name is originated.
A bullish market is the most desired moment for many stock investors, as it provides the opportunity to become rich by generating huge profits. For a new investor, it is extremely important to find out the ways he or she can use to take advantage of the money-making opportunities that are present within a bullish market. Let us find more about this in this article.
Bullish Market - History and Definition
The bullish market concept first originated and became synonymous with rising and falling prices, when people used to bet money on the fight between dog and bull.
In present times, a bull market is a stock market condition wherein a single or broad market price rises exponentially. In this condition, investors make money as the price rise from the purchased value of the stock. The bullish market continues to rise until investors believe that the price will rise even further.
In this way, you can easily see that the stock market is usually run by the sentiment of the investors and they feel prices are going to swing. Big world events and several other reasons influence the sentiment of the investors to cause this type of price fluctuations in the market.
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Bull markets are identified when the stock sees a rally in its price, increasing, and there are lesser chances of it crashing. Conversely, a Bearish market is when the stock market plunges, and the stocks lose its value due to several reasons affecting its performance. Mostly the color green on a stock market chart is bullish, and the color red is bearish. However, these are prolonged over a couple of days to determine the nature of the market.
We all dream of getting rich. A bullish stock market is a golden opportunity, if you already bought stocks when the market was bearish. So, let's see how can you get rich in a bullish market when the stock prices are rising.
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