How To Invest, Part 7: Defining Bull and Bear

(credit: OTA Photos via Flickr)

(credit: OTA Photos via Flickr)

In a recent blog entry I discussed the importance of researching a stock before you buy it. Today I talk about researching the market before you enter it so that you can better define its personality — and yours.

Please note that I’m not suggesting that one market — “bear” or “bull” — is better than another or that we should enter a market at any particular time. Popular notion states that any time is the right time to invest in the stock market.

It’s just that which stocks we buy or how we buy those stocks might change depending on the kind of market it is at any one time.

I’m suggesting that whenever you decide to begin investing in the stock market, you should find out what kind of market it currently is, where it is in that market cycle, and what we can expect from it in the future.

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