A bear market is described as accompanied by widespread pessimism. Investors expect further losses are motivated to sell, with negative sentiment to eat in a vicious circle. The most famous bear market in history after the Wall Street crash of 1929 and lasted from 1930 to 1932, marking the beginning of the Great Depression. A mild, low-level long-term bear market occurred from about 1967 to 1982, the stagflation, energy crises in the 1970s, and the high unemployment in the early 1980s.

The prices fluctuate constantly on the open market, a bear market is not just a decline, but a significant drop in prices for a number of issues over a defined period. According to the Vanguard Group, “While there is no agreed definition of a bear market, a generally accepted measure is a price decline of 20% or more over a period of at least a two-month period.” However, no agreed definition of a bear market to clearly differentiate a primary market trend from a secondary trend.

Investors often confused bear markets with corrections. Corrections are much shorter lived, while the markets occur, contribute over a longer period with usually a larger extent of loss from top to bottom.

An unsolicited bid or offer, if a person or company receives an offer, although they are not looking to sell. A call for war is said to occur when a large number of offers in quick succession by two or more people, especially if the price paid is much larger than the asking price, or greater than the first bid in the event of an unwanted offer must.

A bull market tends to be associated with increasing confidence of investors, to motivate investors to buy in the expectation of further gains. The longest and most famous bull market was in the 1990s, when the United States and many other global financial markets grew in its fastest pace ever.

The description of the behaviour of financial markets, the largest group of market participants is often referred to, metaphorically, like a flock. This is particularly relevant for the participants in markets because bulls are herding animals. A bull market is also known as Bull Run. Dow theory tries to describe the nature of these market movements.

Offer price usually higher than bid price. for example, if the bid price of eur/usd is 1.5500, the offer price can be 1.5502. the different of bid and offer is called spread. on the example, the spread is 2. Most brokers usually get the profit from spreads. So, larger spread means higher profit for brokers, but higher lost for traders. It’s recommended to choose broker with low spread.

Scalping in this sense is the practice of buying a security for its own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit to the rise in market price following the recommendation. The Supreme Court of the United States has decided that scalping of an investment adviser acts as a fraud or deception to every customer or potential customer and constitutes a violation of the Investment Advisers Act of 1940.

The ban on scalping was applied against persons who are not registered investment advisers, and it was decided that scalping is a violation of Article 10b-5 under the Securities Exchange Act of 1934, when the heavy piece of screening plant has a relationship of trust and Confidence with the persons to whom the recommendation. The Securities and Exchange Commission has said that it is committed to stamping out scalping systems. Scalping is different from pumping stations and dumping, that a pump and dump is not a relationship of trust and confidence between the fraudster and his victims.

Scalpers try to act like traditional market makers or specialists. In order to spread to buy at the bid price and selling price on the touchstone of winning bid / ask difference. This procedure allows profit, even if the bid and ask prices do not move at all, as long as there are traders who are willing to accept market prices. It is normally used for setting up and liquidation of the situation quickly, usually within minutes or even seconds.

Spreads are so important in Forex Trading, as your main role in trading is buying low and selling high. Higher spread means you’re losing more in start than lower spreads. The tighter the spread, the better for you. But tight spreads are meaningful only when they are coupled with good execution.

If you choose to buy the base currency (to long the pair), relying on your expectations of its increase should you buy it on the purchase price which is always higher than the selling price, and you lose the spread difference when you suddenly decide to sell the currency at once. Simply put, the rise of the currency price you bought may cause you the loss.