Bull and Bear - once upon a time they used to be just animals living in a jungle but does somebody really remember that? Thanks to our dear stock trade they have morphed into emblems for the fluctuating stock market moods. The high and low swings of the bullish and bearish market test the skills and expertise of traders. These fluctuations are widely dreaded and anticipated by the traders. But those who learn to survive and master these tides are the real victors. A successful trader has the knack of not only dealing but taking advantage of the bull and bear phases.
Let's try to figure out how to do it in five simple ways:
* The Sale mania of Bull and Bear. "The world seems a better place when I shop" says the dreamy-eyed protagonist of the movie "Confessions of a Shopaholic," same is the take of many people on these trends. When the stocks are going horizontal they just can't help buying every stock that they can get their hands on. It might seem right but does not always prove so. Once the bull fever is over it might cost you much repentance. The better way is to learn first about the consistency history of the stocks rather than following the fad. The flipside to this are the bear disciples. They tend to take advantage of the bear effect and pick good stocks in really good prices. But you have to be really patient for this strategy as the stocks might take some time to hike. It would be better to mull the future prospects of such stocks before buying them.
Global Understanding. You have to understand not only the local market but the international market as well. Understanding the phenomenon that it's all connected and effect each other like a vicious cycle is vital to your success in this shifty market. Keep your fingers on the pulse of global economic scenario to make right decisions. Like the earthquake in Japan vitalized its stagnant banking system and positively affected the world economy as well. This understanding of global connection will become your shield against the bull and bear effect.
The game of time. Stock market is all about time game and if you can foresee the progress of the stocks a year ahead then you have the capability to make wise decision. Being ahead in time will win many good stocks even in the ghastly bearish times. It is the time to focus on growth potential stocks rather than lamenting over the existing horrid situation.
Get vaccinated. Don't make hasty decisions of buying and selling in the wake of these bull and bear changes. Learn to be patient and watchful. If you are planning to stay in the business you must tune the nerves to these changes to avoid panic attacks and hysteria. In fact, you should vaccinate your mind in order to immune it to such jerks. Enjoy the tides, take deep breaths and take everything into your stride.
Develop clairvoyance. You can take full advantage of bull or bear market effect only if you have developed a certain area of interest. Once you have developed expertise about different industries then it will become easier to foresee the future and strike the steps accordingly.
I don't claim them to be the hard and fast mantras, but these tips will definitely help you in coping up with the unpredictable stock market.
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