What is stock cycle?
Stock cycle is term u to describe the fact that stocks are like wave they goes up and then back down in a similar patern at a define period and is repeated. Making a cycle that is call stock cycle. most refer to stock cycle as an approximate 10 years period. But other stock cycle of 50 years are also sometimes evoked.
Bear and Bull
Stock cycle are usually referred as 2 part Bear and Bull. A stock cycle contain at least one of each the bear cycle and the bull cycle. Those terms are misleading since it`s the bull part of the stock cycle and the bear part of the stock cycle.
Why Bear and Bull
This reflect the way bear and bull face what is in front of them. this represent the attack way of those 2 animals:
The Bear take it from up in it's 2 back foot to go down. means stock going lower
The bull put's it's head down and hit upside. means stock going up
Why there is stock cycle?
Easy because there is an unbalanced buys and sell offer!
Why?
The buy and sell offer is the basic of all economy. if more person wants to buy then the number available from seller the price go up if their is more person that want to sell then the person that want to buy the price go down. In stocks, forex, futures the belief is that in long term it will go up. Then at start lets assume it should be a bit more buyer then seller then price rise. Some more then say it's good I want also then still more buyer then sellers. At some point buyer begin to think it's a bit expensive and owner also then number of buyer reduce and seller grow. Then at some point there is more seller then buyer and then price goes down. Then many owners begin to say it's probably too high and want to sell, but less and less buyers are interested then price fall. At some point owner say it's too low and begin to keep and not sell. And some say it's cheap I will buy some it will goes up. Then the up trend restarts.
In fact usually what goes up fast without a valid reason goes down as fast or even faster.
In market bear and bull cycle always follow each other in a repetion. Stocks cycle is just an illustration in stocks. but all trading have bear and bull consumer spendind each year has a bear and bull cycle the most known bull one is pre christmas and the bear one is post christmas.
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