What does it mean to be Bearish in trading?

Being bearish in trading means you believe that a market, asset or financial instrument is going to experience a downward trajectory. Being bearish is the opposite of being bullish, which means that you think the market is heading upwards.

What is a bearish market trend?

A bearish market trend refers to an expected downward movement in the prices of securities, assets, currencies, investment instruments, or commodities. In a bear market, investors expect stock prices to drop by 20% or more. The economic slump also presents a buying opportunity for investors.

Are investors 'bearish' or 'bullish'?

Although some investors can be "bearish," the majority of investors are typically "bullish." The stock market, as a whole, has tended to post positive returns over long time horizons. A bear market can be more dangerous to invest in, as many equities lose value and prices become volatile.

What is bearish sentiment?

It is used to identify an investor who believes the stock market or one or more stocks or bonds would go down. It is also called as Bearish Sentiment. A commonly held belief is that when a bear attacks an enemy with its claw, it always brings the opponent down instead of hitting up as the bull does.