Bearish vs. bullish trend: what does it mean?

Asked 3 years ago

Good evening. I'm new to trading and currently learning all the in's and out's of it. What does a bearish vs. bullish market mean in forex? Which do you say is the better of the two and why?

Andia Rispah Igobwa

Wednesday, October 06, 2021

A bearish trend also called a downtrend, is when the price of an investment falls over time. It is the opposite of bullish or up-trending prices.
A bearish trend in stocks suggests that traders and investors have been feverishly selling shares with expectations of more selling ahead, with some buyers willing to buy lower if they think the price will go even lower. 
While it could be a sign that the stock may not be worth what you paid for it earlier on in the cycle, this type of pricing can also offer investors an opportunity to invest in discounted securities at their most ideal point of purchase. 
These discounted options are best suited to short-term investment horizons as risk is always associated with a downturn.