Being bearish means that you believe the market is going to fall, being bullish means you believe the market is going to rise. 

Here is the difference in bearish versus bullish sentiments. 

Here is what causes bullishness:

  • Bulls believe that company earnings and sales will continue to go higher.
  • Bulls believe the government has created an environment where markets can rise in. 
  • Bulls are willing to hold their positions and/or buy more. 
  • Bulls believe the economy will improve from where it is now. 
  • Bulls believe that the market will go higher from current prices.

Here is what causes bearishness:

  • Bears believe that company earnings and sales will continue to decline. 
  • Bears believe the government has failed to create an environment where markets can rise in. 
  • Bears are selling their positions and/or going short. 
  • Bears believe the economy will decline from where it is now. 
  • Bears believe that the market will go lower from current prices.

In bull markets prices make higher highs and higher lows, in bear markets prices make lower highs and lower lows. 

It can be profitable to be bullish in uptrends and bearish in downtrends everything else is just an opinion or a prediction. 

bullish bearish

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.