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== References ==
== References ==
{{Wiktionary}}
* [https://web.archive.org/web/20110514095328/http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2009/01/07/setting-the-bull-trap.aspx Setting the Bull Trap (investorinsight.com)]
* [https://web.archive.org/web/20110514095328/http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2009/01/07/setting-the-bull-trap.aspx Setting the Bull Trap (investorinsight.com)]
* [https://web.archive.org/web/20100214055853/http://www.stocks-simplified.com/Bull_Trap.html Don’t Fight a Bull Trap (stocks-simplified.com)]
* [https://web.archive.org/web/20100214055853/http://www.stocks-simplified.com/Bull_Trap.html Don’t Fight a Bull Trap (stocks-simplified.com)]


{{Wiktionary}}
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[[Category:Behavioral finance]]
[[Category:Behavioral finance]]
[[Category:Business cycle]]
[[Category:Business cycle]]
[[Category:Stock market]]
[[Category:Stock market]]
[[Category:Financial crises]]
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Latest revision as of 09:37, 28 February 2024

In stock market trading, a bull trap is an inaccurate signal that shows a decreasing trend in a stock or index has reversed and is now heading upwards, when in fact, the security will continue to decline.

It is seen as a trap because the bullish investor purchases the stock, thinking it will increase in value, but is trapped with a poor performing stock whose value is still falling.

See also

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References

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