Why a rise in retail trading may signal another bear market rally? The answer is simple. It’s all about supply and demand. In today’s economic climate, the demand for goods and services is at an all-time high. The supply of certain types of goods has also risen sharply. That means that producers of certain types of goods are taking advantage of increased demand and are hiking up their production to keep up with the demand.
As demand for goods and services increases, the supply of those items drops. The supply of necessary goods and services falls to the point where they become scarce. Since demand for those items is high, manufacturers and suppliers hike up their production to counter the supply increase and get their products to market.
If you’re in the market, you’ve probably already noticed this. In a normal bull market, the supply and demand forces are in balance. When the market is bullish, the supply is still high and the demand is still low. But when supply exceeds demand, prices fall. So if you want to make money in a bear market, you have to go with the flow.
But retail trading isn’t like the stock market. Here the supply exceeds the demand, meaning that supply exceeds demand, which drives prices up. This creates a market driven by fear and greed – the desire to take advantage of the low prices before other traders realize the opportunity. And because retail trading involves close to direct control of inventory, emotions can easily get the better of your better judgment.
This can create a situation where people buy more than they should, sell more than they should, or drive their prices too high. When this happens, the supply exceeds the demand, creating what is known as a bear market. The opposite is true of a bullish market, where the demand exceeds the supply and the prices start to rise. Now a bull market is usually considered a good time to invest. But if it continues on its current course, that is also a time to get in now.
Why does this matter? Think about the last time you saw a big drop in the Dow or a big drop in the Japanese stocks. What were the reasons for these drops? Many believed that the economy was in bad shape. Some blamed the loss of confidence in the American dollar. But the real reason was the sharp increase in the supply of a bad market.
Another bear market signal is when prices rise for no obvious reason. This can happen during a recovery phase, such as when companies are about to release their profits. Investors often panic and sell in panic, driving prices down even further. They may just be waiting for the prices to level off again, and once they do, they will unload and resume buying. And this can lead to a very sharp sell-off in the market.
How do you know when to get in now? You must remember that the best days for retail trading are always the darkest days for the market. So, if you spot a rise in retail trading and you see that it’s going to continue, act quickly to get in before it gets too steep. The recovery phase is usually short and you need to get in now to ride it out before prices start to climb again. And you must also remember that you don’t need to get into retail trading just because you like the trend. It can go either way, up or down and you should only trade with the trend.