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Showing posts with label bullish trends. Show all posts
Showing posts with label bullish trends. Show all posts

Saturday, September 3, 2011

Bullish v/s Bearish stock markets


Stock markets have just two ways to go : upward or downward. Now upward trend can be accomplished when there is buying activity being seen. Basically Stock markets work on principle of "Demand and Supply", It is not literally demand and supply but demand here depends on company's performance and approach to changing work dynamics and economic conditions.

One has to first understand that when a stock price goes up, it has to come down. The timeframe when stock markets are rising is referenced as bullish and time when stock markets are witnessing selling is called Bearish. Since stock markets just implement an algorithm for Demand and Supply considering various stock factors(market cap etc). An artificial demand can be created in stock markets for company which is less demanding. It is often reffered as stock market scam but according to me it's hundred percent legal as Stock markets allow it, However now a days if a stock witnesses change of 20 percent in value in one day it is locked for that particular day. Many stock prices which rise 6-9 percent a day is often due to such buying or selling.

 

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