What is a bull market:

1. A bull market is also called a bull market, which refers to a securities market where prices are rising for a long time. The general trend of price changes is to keep going up, with the characteristics of large rises and small falls.

2. The overall trend of the bull market is upward. Although there are declines, each wave is higher than the last. There are more buyers than sellers, and demand is greater than supply. Popularity continues to gather.

3. Investors have a strong desire to chase high prices, the number of new accounts opened continues to increase, and new funds continue to flow in.

ps: There is no absolute standard for a bull market; some people say that when even the vegetable market starts discussing stocks, it means that the bull market has reached its peak, which is not unreasonable.

Just a reminder, try to avoid frequent operations in a bull market and don't chase high prices

How a bull market is formed:

1. The bull market is related to the economic cycle. This is manifested in the rapid growth of corporate profits during the economic boom, which leads to the outbreak of a bull market. The most obvious example is the bull market in the Chinese stock market in 2007, which had actually been brewing for several years.

2. The bull market is related to risk appetite. This is mainly manifested in the policy leading to an increase in investors' risk appetite, and their willingness to buy stocks more boldly; the most typical example of this is the bull market of China's A-shares in 2015.

3. The bull market is also related to interest rates and inflation. Usually, when funds are relatively abundant and interest rates are relatively low, it is easier to generate a bull market.

The three stages of a bull market:

In the first stage, a few visionaries began to believe that everything would be better.

In the second stage, most investors realize that progress has indeed occurred.

In the third stage, everyone asserts that everything will always be better.

How ordinary people cope:

1. Distinguish between ability and luck: In a bull market, you can make money easily. Don’t be blindly confident, it may just be luck; don’t invest if you don’t understand.

2. Treat it calmly and rationally, avoid blindly following the trend or frequent trading, and sell in time to make a profit and lock in the money.

3. Don’t use leverage: In a bull market, people sometimes borrow money for investment. Don’t borrow money to invest in stocks, and do it within your means.

4. Diversify your investment portfolio: Don't put all your eggs in one basket. Reduce risk by diversifying your investments.