Bull Markets Climb Stairs, Bear Markets Fall Out of Bed, what the heck does that mean? It just means that, in general, if the market is climbing, it climbs more slowly, with stops and starts, and if the market is falling, it tends to fall fast and far and hard. Not always, of course, but this “rule” is one that is good to keep in mind, because it is often true.
Why You Should Know How Markets Move
Knowing how markets move, their tendency to trend fast or slow, with fits and starts or straight down, will help you in knowing when and how to enter a trade, and whether to “stay the course” or jump out with a profit quickly.
By “Market” I mean any index or instrument you might be trading. So, it applies to the S&P, to Google, to oil futures, to FOREX pairs. Let me show you an example: