Bull trap: Difference between revisions

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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.

References

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+In stock market trading, a '''bull trap''' is an inaccurate signal that shows a [[Bear market|decreasing trend]] in a [[stock]] or [[Index (economics)|index]] has reversed and is now heading [[Bull market|upwards]], when in fact, the security will continue to decline.
-{{Orphan|date=May 2011}}
-In [[economics]], a '''Bull trap''' is an inaccurate signal that shows a [[Bear market|decreasing trend]] in a [[stock]] or [[Index (economics)|index]] has reversed and is now heading [[Bull market|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.
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 == See also ==
 {{Portal|Business and economics}}
-*[[Economic bubble]]
-*[[Stock market bubble]]
-*[[Speculation]]
 *[[Boom and bust]]
+*[[Dead cat bounce]]
+*[[Economic bubble]]
 *[[Market trend]]
+*[[Speculation]]
+*[[Stock market bubble]]
 == References ==
-* [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)]
-* [http://www.stocks-simplified.com/Bull_Trap.html Don’t Fight a Bull Trap (stocks-simplified.com)]
 {{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)]
-{{business-stub}}
+* [https://web.archive.org/web/20100214055853/http://www.stocks-simplified.com/Bull_Trap.html Don’t Fight a Bull Trap (stocks-simplified.com)]
 [[Category:Behavioral finance]]
 [[Category:Business cycle]]
-[[Category:Economies]]
+[[Category:Stock market]]
-[[Category:Economics]]
 [[Category:Financial crises]]
+{{business-stub}}