An important aspect of trading in the markets is to understand how to feel. It is generally wrist At the fair, this is measured by measuring the movements of selected stocks to let you know how the market is doing in general in various sectors. A man by the name of Dow came up with this concept and we still use his Dow Index for measuring the pulse of the market today. There are also a number of others out there, but another popular index of mostly technical reserves, the NASDAQ.
Bull Market - This describes a market where the overall market is rising. Typically, this is measured by the Nasdaq and the Dow Indexes. Experts recommend that you buy only during Bull Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of shares plummet during Bull Markets also.
Bear Market - This describes a market where the overall market declines. As with Bull Markets, again we measure this by the Nasdaq and the Dow Indexes. Experts recommend that you use only short during Bear Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of stocks that rise during Bear Markets also.
The main thing about using indexes to help your trading has been mentioned before. During Bull Markets, you can expect that 65% or more of all shares to rise - so if you're looking to buy during Bull Markets, the odds are very much in your favor. Of course, the opposite is true with Bear Markets. Another feature of these two markets is that Bull markets generally last 2-3 years, while Bear Markets last only 1-1 ½ years. So it's a very good idea for new traders to get into the habit indexes after the beginning of their learning. This gives give you a huge advantage.
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate a new idea stock trading visit his website, Online Stock Trading Reviews
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