Even though up to now no standard or standard rules regarding bear markets have been found, experts agree that a bear market on the stock market is characterized by a decline of at least 20% from the ATH. Bear markets are also often marked by successive declines in stock prices, so a bear market does not occur suddenly. but starting with the symptoms or stages so that we can first learn and anticipate the risks or bad impacts of a bear market. Following are several stages of a bear market:
1. Stock prices skyrocket
The initial symptoms of a bear market are high stock prices, positive sentiment or many new investors entering the world of stocks. Unfortunately at this stage many whales use the opportunity to make a profit.
2. The market starts to fall
The drastic decline in share prices was triggered by trading activity and company profits which also experienced a decline. This is quite worrying, because at this stage investors are starting to panic because sentiment is declining.
3. Slowly, stock prices continue to decline
Continuously falling stock prices will cause novice investors to panic and immediately sell their shares, but at this stage the whales appear.
4. Speculators
The emergence of speculators or whales will try to take the golden opportunity to buy stocks at cheap prices. The increase in stock purchases will cause stock prices to rise and stock trading volume to also increase.
So we can recognize a bear market from the weakening of the stock price index, every day a new low price will be formed, meaning today's price is lower than yesterday's price.
1. Stock prices skyrocket
The initial symptoms of a bear market are high stock prices, positive sentiment or many new investors entering the world of stocks. Unfortunately at this stage many whales use the opportunity to make a profit.
2. The market starts to fall
The drastic decline in share prices was triggered by trading activity and company profits which also experienced a decline. This is quite worrying, because at this stage investors are starting to panic because sentiment is declining.
3. Slowly, stock prices continue to decline
Continuously falling stock prices will cause novice investors to panic and immediately sell their shares, but at this stage the whales appear.
4. Speculators
The emergence of speculators or whales will try to take the golden opportunity to buy stocks at cheap prices. The increase in stock purchases will cause stock prices to rise and stock trading volume to also increase.
So we can recognize a bear market from the weakening of the stock price index, every day a new low price will be formed, meaning today's price is lower than yesterday's price.
