I am sure you will come across the term 'bull market' and 'bear market' when you read the finance or business section of the newspaper. This two represent the market trends. Just like in our life, there is happiness and sadness. I did some research over the internet and found out from Investopedia.com that the terms come from they way animals attack their opponents.

A 'bull market' is simply a market that is going upwards. Investor usually will have higher confidence, and the market will be quite active. The economy will be good, as lots of people will be making money from their investment.

A 'bear market', on the other hand, is simply a market that is going downwards. There is a strong pessimism among investor, causing the market to be quite dull. There will not be much active trading, as investor keep their cash, waiting for suitable time to invest.

This 2 terms is very important, before I get into the discussion of buying in bull and bear market.