Financial Markets are the one underlying factor every country has strived hard to have from the late 17th century. The resultant has been the development of a steady and stable financial market in all the developed economies. It was a booming period for the financial markets when after the First World War, great depression struck all significant economies during the period ranging from 1929 to 1932. There are many type of markets which have been characterized under the category of financial market as a whole and it starts from share market, the most famous one for buying and selling shares, commodity markets for commodity trading, bond and stock markets which is as the name suggests for given bonds and stocks, money market which is very important for the right rotation of liquid assets as only with the same investments and lending are possible, etc. These markets have one thing in common, i.e., the fact that all of them are related to the financial sector in one way or the other and the primary point is the finance which is required to buy or sell these investments. Financial Markets today, have been technologically advanced and supports investors who invest huge amount of their money and time and helps them protect their rights when the same is getting distorted.

The financial markets are the foremost important base to have a certain market cycle. The market cycles can be best understood when one is certain of the four phases which are found in every market cycle irrespective of the place where it operates. The phase is called the accumulation phase, which is on an easier note known as the starting phase. In the accumulation phase, shares and stocks are bought up by the investors as the value is usually on the lower end. Following the same is the Mark Up phase, where the values of the shares and stocks are growing high as they are still not exactly stable and tend to offer more profit. Such a phase though may create suspicion to the investor, still one set of the investors make use of the situation and get the desired amount of shares which can be shared during profit period. The third phase is known as the distribution phase which is more of known to be stable and prices are stable throughout on the upper side of the values and investors can happily buy or sell their part to earn more profits as required. The final phase is the stage of Mark Down where the tables have changed and the company faces huge loses owing to the market being down and investors are able to pick the lowest fares possible.

Read:  Blockchain Explained

After moving through the information of the phases in a market cycle, it is important to know the two types of market cycle which are commonly known across the globe and the companies follow the pattern. The two cycles are known as the bull market and the bear market. The Bull market is named so after a bull as it attacks like a bull which has an upward action and aggression and such a market marks the profitable side. Whereas, a bear market is named so as it attacks like a bear which is known to be less aggressive and using the paw on a lower direction to attack. In a similar fashion, the market is on the lower side causing huge losses. Bull and Bear markets are for a long time starting from few months to years. Such a period may witness slight changes in between, but that will not change the entire outlook. Bull Markets are very positive for investors as well as companies and have some of the important factors such as buying and selling, increase in buying and selling, retraction which is the aggressive form of selling the shares in a short span and full swing saving methods which are very common for investors who want to invest safely and securely.

Moving ahead deeper into the markets may also mark an important phase to know what a complete market process is. The irony of the fact is that there is no starting and endpoint and the process goes on in a cycle starting from the manufacturing of a specific product, packaging the same, distributing it, marketing the same with exact techniques and selling them. The other two important techniques are relating to customer service, which has become important in today’s world. Investors are certainly attracted towards the market as it comes with a bundle full of benefits and some risks which can certainly be avoided with some tips. The first and foremost tip is to understand where the investor is investing money which means the coverage of the details about the company on which money is invested. The next step is to knowing the financial status of the company as even if there is a loss, it is pertinent to know whether they will be able to repay the investors with interests or not. Moving forward is the dividends which act as an assurance for the investors to invest money and knowing whether the same is available. All such factors if followed, one can avoid loss and the field can be used to the maximum.

Read:  Introduction to Growth Hacking | eBook | AudioBook

Would you like to read more about this topic? This book might interest you: Key Ideas on Market Cycles.