Bull market

A bull market describes a sustained period of rising prices across a broad market or specific asset class. It is characterized by increasing demand, strong economic indicators, and positive investor sentiment. During this phase, buyers outnumber sellers, pushing prices higher. This upward trend can last for months or even years, often punctuated by minor corrections before resuming its general ascent.

For a retail trader, identifying a bull market can indicate favorable conditions for long positions, aiming to profit from rising prices. However, prolonged bull markets can lead to overvaluation, increasing the risk of sharp corrections. Traders must avoid confirmation bias and ensure their risk management strategies account for potential reversals. Entering trades late in a bull cycle carries higher risk of drawdown.