Bull Market
An extended period of rising prices and generally positive sentiment.
Also called: bullish · bull
In plain language
A bull market is a sustained advance, conventionally marked from a 20% rise off a major low, though the label is applied loosely.
Its practical signature is that pullbacks are shallow and bought quickly, and that structure keeps producing higher highs and higher lows over long stretches.
Bull markets flatter poor risk management. Oversized positions and absent stops appear to work right up until conditions change.
Why it matters
Knowing the broader regime tells you which side has the tailwind, and warns you when good results are coming from the environment rather than from your process.
Common mistakes
- Mistaking a rising market for skill and increasing risk accordingly.
- Assuming a bull market makes stops unnecessary.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
An extended period of falling prices and generally negative sentiment.
A sustained directional bias in price, built from a repeating pattern of highs and lows.
The pattern of highs and lows that describes whether a market is trending or ranging.
The set of rules that decides how much you can lose, before you think about what you can win.
Overweighting recent outcomes when judging what is likely to happen next.