What is a Bear Market Markets are always changing, either upwards or downwards. On a daily basis currencies are gaining or losing value, they are affected by everything in world, from news releases, to natural disasters, to political decisions, leaving economies of some countries fragile and broken and others rich and thriving. The difference between the two economies is described through a simple term, Bearish or Bullish. A Bear or Bearish market is the former. A low economy that is constantly suffering falls. All currencies move up and down several times during a day but the general movement of a market is usually constant. The term ‘Bear Market’ comes from the fighting technique of a bear, which is swiping its enemy down, and a bear market is swiped down completely. A bear market is surrounded by a flailing economy, unemployment, and a low financial environment. It is hard for a bearish market to move to bullish, because it can’t get any investors. All traders and investors will avoid a bear market because it will offer low to no profits and therefore makes a horrible investment choice. Without any investors the economy will not improve or move forward. A change can happen due to different scenarios, such as doing business with another country, which will force that country to use the local currency increasing its value, or an unexpected political or environmental change which will push people to buy the local currency, but until a bearish market gets all the support it needs, it will not move up to become bearish. fxnet/news/how-to-use-a-demo-account FxNet Ltd is a global, fully licensed Over the Counter (OTC) online Forex and commodities broker, regulated by the Cyprus Securities and Exchange Commission (CySEC). FxNet is located in Limassol Cyprus. FxNets mission is to reach and retain traders around the globe through exceptional customer service, integrity and continuous innovation that will provide our clients with simple, exciting and secured trading platforms.
Posted on: Fri, 24 Jan 2014 09:48:32 +0000