Buy stocks early to take sell at the peak of the rising prices. Learn more about these terms of GDP. There is also an increase in the amount of IPO activity. The advance or decline line represents the number of advancing issues divided by the number of declining issues over a given period. When the line declines for several months as the averages continue to rise then it is a negative correlation. A major correction or a bear market is likely to happen when the line decline for months continuously. Falling prices characterize the bear market while the bear market shows rising prices. The phases of economic cycles are expansion, peak, contraction, and trough. The onset of a bull market is an indicator of economic expansion. Even though the risks are high, you can make profits in the bull and bear market. You need to understand which market you are in. There are several strategies for making profits in the bear and bull market.
Purchase the stocks in the bull market when prices are low and wait for prices to rise before you sell them. Buying and holding needs an investor who is confident in their instincts that the prices of the stocks rise.
Increased buy and hold somehow similar to buy and hold strategy. Increased buy and hold has more risks than buy and hold. The investor observes the rate of increase of the price of their stocks but instead of selling like in the buy and hold they continue buying as they wait for prices to shoot higher for them to sell.
An investor in the bull market can use retracement additions; hence learn these terms about retracement. The retracement additions provide the investor with a discount on the purchase price.
Full swing trading in the bull and bear markets involves the use of short-selling and other techniques to get maximum gains as shifts occur in the bull or bear market..
The future date beyond which the seller cannot be allowed to sell the shares is called expiration date. The bear market charges a premium. If the price of the stock drops lower than the strike price of the put option, you have the option of selling the put option at a profit or sell the stock at the higher strike price.
Find out more on some of these terms on the short EFTs. The inverse relationship makes inverse ETFs appropriate for investors who aspire to make a profit in the bear market.
You buy the stocks at a low price and sell them at a higher price.
The transaction costs and operating expenses are low when you use long EFTs.