What is Bearish?
Being Bearish in stock trading means that the investor believes, a particular stock or the overall market is going to see a downward trajectory. Bearish is a term used to describe a pessimistic perspective about the direction of one stock, a group of stocks within an industry / sector, the overall stock market or the economy.As Merriam-Webster explains the term Bear can be unearthed first in an old proverb that reads it is imprudent "to sell the bear's skin before one has caught the bear". By the 18th century, "selling the bearskin" had turned into an euphemism for selling a borrowed security with the intention of repurchasing and giving it back at a later time at a lower price, that is tantamount to a pessimistic action referred to as short selling today.
An investor when she or he becomes "Bearish" typically sells securities to reduce her or his exposure to risk or takes defensive steps looking into conservative investments or holding cash. When a stock trader is bearish, she or he presumes that stock prices are likely to drop, and anticipates that market conditions are due to go downward.
BEARISH ARE PESSIMISTIC
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Being Bearish is the opposite of being bullish. Bullish investor assumes, the market trends are heading upwards. In wake of Bearish sentiment when the majority of investors believe that the stock market will go downside, a Bear market can take shape that describes a prolonged period of declining stock prices. Bear market is characterized by pessimism, fears and sell-sentiment. During a Bear market the sentiment will become pessimist backed by the prediction of investors that the overall direction of a group of stocks, entire sectors / industries or the overall stock market will turn to downward in expectation of a prevailing downtrend, in which stock prices will continue to decrease.
While Bearish traders believe that prices will drop and many of them attempt to profit from this decline, Bullish investors think the opposite. These two contrary suppositions link the bullish and Bearish investors, because bulls purchase the stocks sold by bears.
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Bear markets can be sparked by a wide array of influential factors such as political or economic events, catastrophes, financial instability, company revenues disappointments, or unpredictable changes in market sentiment. Even during Bear markets when prices fall, there are stock market catalysts that can cause particular stocks to rise despite of the overall Bearish sentiment on the market. This is where Bullish Stock Ticker News comes into play. Our Genius∔ News Screener's Real-Time updates on Bullish Stock Ticker New makes you enable to make profit from the very early period of the stock's sharp uptrend relevant to the Bullish News.
Bear in mind, there are multiple ways to attempt to profit from Bearish market conditions for both bullish and Bearish investors. While in a Bear market most investors sell stocks due to a significant drop of performance in one or more lagging sectors or industries, there might be a certain group of stocks that can experience rise in their value.
BEARISH IS A NEGATIVE APPROACH
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