Business

Characteristics And Differences Of Bull And Bear Markets

To start, it should be noted that the price series in a bull market is (Bull Market คือ, which is the term in Thai) usually more orderly. Generally, bull prices maintain some guidelines, which makes it a little easier to make certain decisions when opening operations. However, market volatility does not allow creating a formula that works 100% of the time. But at least, unlike bear markets, prices remain more stable.

In bear markets, it is much more difficult to control price behavior since they are often capricious. The influence that exists on prices in bear markets is much more noticeable. It is not uncommon to observe an even more pronounced decline in a downward trend as a result of a moment of panic and uncertainty.

The highs and lows are usually more controlled; that is, they tend to be more stable and less volatile. The same does not happen with the maximum and minimum prices of the decreasing markets, where the values tend to suffer many more disturbances in their quotations. In bull markets, other phenomena also occur that cause abrupt changes in the trend, such as euphoria, so characteristic of rising markets.

However, bear markets are virtually influenced by any circumstance, which makes it much more difficult to operate in this market. It should also be noted that in markets with a downward trend, speculation takes on much more prominence than in bull markets. The speculative component is much more noticeable in downward prices, and that must be taken into account.

If we look at a graph of the markets in both trends, we will see a clear difference from one type to another. The next thing will be to decide which one will suit us the most to operate successfully.

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