Bull Market

A bull market is when the stock prices keep going up. It is like when a bull charges forward. To know if a bull market has started, one has to look for a big increase in stock prices – at least 20% higher than before. The opposite of a bull market is a bear market when the stock prices go down. Besides considering the bull markets as it relates to stocks, it can also happen in other markets like bonds or real estate.

People who trade stocks use different ways to make money during a bull market. For example, they might buy stocks and hold onto them, hoping the prices will go up even more. Or, they might buy when the price goes down a little bit, expecting it to go back up. It is like when one feels confident and positive about a particular thing. You think good things are going to happen. It is hard to know when that feeling might change, especially because sometimes people can get too excited and make risky bets.