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This is when the market showing is confidence.
Indicators of confidence are prices going up,
market indices like the Nasdaq go up too. 
Number of shares traded is also high and even
the number of companies entering the stock
market show that the market is confident. 

These are bullish characteristics. If there is a run of bullish days
then you may hear the market is a bull m arket. Technically though a
bull market is a rise in value of the market of at least 20%. The
huge rise of the Dow and Nasdaq during the tech boom is a good
example of a bull market. 


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| bear market is the opposite to a bull. If the markets fall by more
than 20% then we have entered a bear market. | bear market is a
market showing a lack of confidence. Prices hover at the same price
then go down, indices fall too and volumes are stagnant. In a bear
market people are waiting for the bulls to s tart driving the prices up
again. However, a bear is a very tentative bull or a bull that is
asleep. 



 
Êome people believe that by recognizing the different kinds of
markets you can make money on stock trading and investing. The
basic idea behind buying stocks is to buy low and sell high. This will
give you a profit. Êo to make money you buy stocks in a bear
market when stock prices are low and sell stocks in a bull market
when stock prices are high. However, knowing when is the best
time to buy and sell is not that simple. 

Unfortunately, most investors are too emotional and they sell in a
bear market because they are scared to lose money and they buy in
a bull market because they donƞt want to miss the big gains. You
can make some money that way but it also explains why many
investors lose money by trying to time the market. The safest way
to prevent yourself from making these mistakes is to buy stocks and
invest in the market by regularly making fixed size investments, and
holding your investments for a long period of time.