Share Trading – Bull Market Or Bear?

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Share trading is a good way to make your living, if you knew what you wanted and how you would go about it. There are different aspects to share trading which you need to be aware of, if you want to be successful in your venture. For instance, would you want to be in it for the short term, or would you want to stay long term? In other words, are you an investor, or would you want to be a trader?

There is a basic difference between share trading and investing, where the differential has more to do with the time frame of your investing than what you actually deal with. If you are an investor, you would typically want to stay in the business for a longer term, waiting for your capital to appreciate and for your shares to grow large enough to yield handsome profits. As you would appreciate, share trading is of a shorter time frame, where you trade in shares - in the sense that you buy and sell shares. The aim of the share trader is not to stay in stocks for a long time, but to find out opportunities to buy shares at the most appropriate time and sell them at the best possible occasion, before there is a slide in share prices.

The duration and timescales in share trading vary widely, and there are all kinds of share trading options available, from the ones where you buy and sell shares the same day, where you sell without actually owning shares, and where you buy shares, hold on to them to appreciate in value and you sell them, making margins in what you have sold. And if you are interested in share trading, it is most likely that you would have also heard of bull markets and bear markets.

Bull markets are those that are filled with optimists, who would look forward to stocks appreciating in value, and would be ‘bullish' about their outlook to share trading, willing to buy shares. On the other hand, a bear market is one of a rather pessimistic mood, where share trading takes a nose dive, with people willing to sell shares that they own for fear that the share prices would crash further, leading to losses. Bear markets may not see many buyers, as people would take cover and wait for shares to reach the bottom. As a Stock Trading share trader, you need to know whether you want to be in it for the short or the long term, and know if you are in the bull market or in the bear market, before you make your move.

If you're ready to start trading CFDs now, you can open an account online in minutes. Discover all types of risk involve in Share CFDs and how to manage them. Learn all the concept of Stock Trading and much more. Read my blogs at Ralph Merlin.

 

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