Bear Market, also known as bear market, refers to the securities market in which prices show a long-term downward trend. The general trend of price changes is to continue to decline, characterized by large falls and small increases.

The overall operating trend of the short market is downward. Although there are rebounds, they are lower each wave. The vast majority of people lose money. Although there are occasional opportunities, they are fleeting and difficult to capture and operate. difficulty. There is no short-selling mechanism in the Chinese stock market. Investors should try to avoid entering the market again in the short market and wait and see. Margin margin trading, stock index futures, commodity futures, etc. all have short-selling mechanisms, and short-selling can be performed to make profits.

Bull market and bear market are two different trends expected in the stock market. Bull market is a technical term for predicting bullish stock market conditions and an optimistic outlook, while bear market is a technical term for predicting a bearish stock market trend and a pessimistic outlook.

A bull market appears

The main signs of a bull market are: ① The number of stocks rising in price is more than the number of stocks falling in price; ② When the price rises, the total trading volume of the stock is high, or the price The total trading volume of stocks is low when it declines; ③ Companies buy back their own stocks in large quantities, resulting in a reduction in the total number of stocks on the market; ④ The stocks of large companies join the ranks of depreciators, indicating that the stock market price is approaching the bottom; ⑤ A large number of recent short-selling signs leading to a forward bull market; ⑥ Securities companies lower the requirements for the proportion of their own funds of debt investors, allowing them to invest more funds in the market; ⑦ The government reduces the statutory reserve ratio of banks; ⑧ Insiders (corporate managers, directors and major shareholders) compete to buy shares.

A bear market appears

The main signs of a bear market are: ① The increase in stock prices has slowed down; ② The price of bonds has dropped sharply, attracting many stock investors; ③ Due to the attraction of the previous rise in stocks , a large number of novice securities traders poured into the market for stock trading, indicating that the arrival of the bear market is not far away; ④ Investors are turning from riskier stocks to safer bonds, which means that pessimism about the stock market is rising; ⑤ Business reasons The urgent need for short-term funds leads to large amounts of borrowing, causing short-term interest rates to be equal to or even higher than long-term interest rates, resulting in reduced corporate profits and a decline in stock prices; ⑥ Utility companies have a large demand for funds, and the stock price changes of these companies are often ahead of other stocks. Therefore, the drop in its stock price can be regarded as a bearish precursor to the overall stock market.