{"id":53914,"date":"2024-08-22T09:59:27","date_gmt":"2024-08-22T07:59:27","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=glossar&#038;p=53914"},"modified":"2024-08-22T09:59:27","modified_gmt":"2024-08-22T07:59:27","slug":"bull-market","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/bullenmarkt\/","title":{"rendered":"Bull market"},"content":{"rendered":"<p class=\"wp-block-paragraph\">You have probably heard of the metaphors \"bull market\" and \"bear market\". But what do these wild animals have to do with the stock market? In this article, you will find out exactly what a bull market is, what phases it is characterized by and when it starts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bull market Meaning<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The term \"<strong>Bull market<\/strong>\" refers to a longer-term upward trend on the stock market. Synonymous words are \"rise\" or \"bull market\". A bull has its horns pointing upwards. In the event of an attack, it pushes upwards from below, symbolizing rising prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If, on the other hand, share prices fall, a <strong>Bear market <\/strong>spoken. It can strike with its paw from top to bottom when attacking, which is why it represents falling prices.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact origin of the terms is still unclear:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nevertheless, both animals have established themselves as emblems on the stock market<\/li>\n\n\n\n<li>Many stock exchanges have placed a statue of a bull on their premises in the hope of rising prices and as a symbolic image<\/li>\n\n\n\n<li>A particularly well-known example is the attacking bull in Bowling Green Park near Wall Street<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How does a bull market develop?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A bull market normally develops in three phases. First, a <strong>Accumulation phase <\/strong>on. There is a downward trend before the chart changes and becomes an upward trend. The reasons for this are better conditions in the economy, allowing companies to make profits.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a <strong>good entry point<\/strong>if investors want to achieve long-term returns. However, such points in time are <strong>difficult to recognize<\/strong> and can also only be of a short-term nature. Particularly well-informed and forward-looking investors have the opportunity to recognize such changes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The accumulation phase is followed by the <strong>Participation for the public<\/strong>. Other investors recognize opportunities and want to participate in the stock market because they expect to make a profit. Trading volumes increase during this phase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The last phase is called <strong>Distribution phase <\/strong>is referred to as. It can cause market sentiment to rise sharply. The last investors, who were previously in doubt, come in and invest their money. Experienced and well-informed investors often use this opportunity to sell or get out completely. At the end of this phase, a downward trend sets in.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is part of the market that <strong>Bull and bear markets alternate<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Statistically speaking, a bull market lasts around seven years and a bear market around 1.5 years<\/li>\n\n\n\n<li>However, these times are not certain<\/li>\n\n\n\n<li>Investors must take many different indicators into account<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is where the danger of \"<strong>Bull trap<\/strong>\". During a bull market, investors assume that the positive trend will continue and buy more securities. In principle, past phases are never a reliable sign of future developments.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When does the bull market start?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are <strong>No exact definitions<\/strong> for when a bull or bear market exists. These are rough descriptions that a bull market stands for a long-term upward trend and a bear market for a long-term downward trend. Therefore <strong>No fixed key figures<\/strong> available, which an investor can use to know that a bull market exists.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there are <strong>Rough reference values<\/strong>which can help with the assessment. In a bull market, it can be assumed that prices will rise by more than 20 percent within two months. In bear markets, the opposite is the case.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: What does bull market mean?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Bull market is a term for a <strong>long-term rising market<\/strong>. The counterpart to this is the bear market, which refers to long-term falling prices. It is important to note that there are no precise definitions of when a bull or bear market begins. Only rough guidelines can be used here.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A bear market roughly consists of three phases: <strong>Accumulation phase, public participation and distribution phase<\/strong>. In the first phase, there is a turnaround from a downward to an upward trend. Well-informed investors can already take action at this point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the subsequent phase, a bull market is characterized by a <strong>Increased investor activity<\/strong>who also recognize opportunities at this time and begin to invest. The trading volume increases. The final phase, the distribution phase, is often characterized by <strong>Euphoria among investors<\/strong> and indicates the phase before the turnaround to a downward trend.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-53914","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/53914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=53914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}