What Makes Stocks Prices Rise in a Bull Market?
Investing in what meases in a bull market will help you to understand the basic fundamentals of how and why stocks and shares appreciate or depreciate. A good book on investing basics for beginners which helps one understand the basic concepts of stock markets is Investing essentials by David Funk. In this book, he discusses the concept of a bull market, how it works, and what makes stocks go up and stocks go down. One of the most useful sections of this book is where he explains the concept of technical analysis. He explains why certain stocks may behave differently from the way they would in a normal trading environment, and why other stocks are priced the same regardless of market conditions.
What separates a bull market from a bear market is the sheer amount of buying and selling that goes on in each type of market. Whereas in other types of markets, people trade just once or twice a year, bull markets routinely go on for months at a time as investors buy up all the shares they can lay their hands on. So, when you hear the term “what makes stocks prices rise in a bull market?” this is referring to the buying and selling pressure that drive up stock prices for a given period of time.
Studying what causes a bull market and how to spot signs that indicate the start of a bull market is a great way to make money trading stocks. The trick is to look out for indicators that signal the start of a trend. Some of these include the MSCI’s gauge of stock prices, the Nikkei index of Japanese stocks, and the Dow Jones Industrial Average.