Bull vs Bear Markets: What They Mean and How to Trade Them
Understand the difference between bull and bear markets and strategies that work in both conditions.
What is Bull and Bear Markets?
Bull and Bear Markets describe extended periods of rising (bull) or falling (bear) stock prices. A bull market is a 20%+ rise; a bear market is a 20%+ decline.
Bulls thrust horns upward, bears swipe downward—hence the names.
TL;DR - Quick Answer
Bull = 20%+ rise (optimism). Bear = 20%+ fall (fear). Bulls last years, bears last months. Don't panic sell—staying invested historically wins.
Bull vs Bear Markets
Bull Market: 20%+ rise, optimism, economic growth.
Bear Market: 20%+ decline, fear, recession.
Historical Context
Bull markets average 5-6 years. Bear markets average 9-18 months. The market rises more than it falls.
Key Takeaways
- Bull = 20%+ up, Bear = 20%+ down
- Bulls last longer than bears
- Staying invested beats timing
Related Options Strategies
Understanding related strategies helps you choose the best approach for your market outlook and risk tolerance. Each strategy has unique characteristics that make it suitable for different market conditions.
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