The Chinese yuan gained ground on Friday as improved sentiment in domestic markets, and a softer US dollar offered support. With traders balancing expectations around US jobs data and monitoring signals from Beijing, the currency remains at the centre of attention in global forex markets.
Dollar weakness lifts yuan momentum
The Chinese yuan posted modest gains on Friday in both onshore and offshore trading, supported by a rebound in domestic equities and a softer US dollar.
A surge in Chinese equities is stoking bullish sentiment toward the yuan, raising prospects of a virtuous cycle where gains in one asset class reinforce confidence in the other https://t.co/r7TDYWKuze
According to market observers, fading regulatory concerns helped lift Chinese stocks, which in turn created positive momentum for regional assets.
The People’s Bank of China (PBoC) also contributed to the yuan’s strength by setting the daily reference rate at 7.1064 – well above market forecasts. The offshore yuan (USD/CNH) mirrored this move, trading near 7.1334 by midday in Asia.
Meanwhile, the broader dollar weakened ahead of the highly anticipated US non-farm payrolls (NFP) release later in the day, a report that could heavily influence expectations for Federal Reserve policy.
Technical analysis
The USD/CNH pair is currently trading around 7.13, slipping 0.06% and extending the gradual decline that began after April’s peak near 7.43.
The currency pair remains close to the 7.11 support area, maintaining a steady downtrend. Short-term moving averages (5, 10, 30) are aligned bearishly, pointing to sustained selling pressure. In addition, the MACD remains negative, underlining continued downside momentum.
Picture: USDCNH-ECN trades at 7.1316, edging down 0.06% from its recent level, with support near 7.11 as seen on the VT Markets app.
A clear break below 7.11 could expose the next support level around 7.05. On the upside, initial resistance is located at 7.20, followed by 7.25 – levels that would need to be reclaimed for any shift back towards bullish sentiment.
For now, the technical setup stays bearish, with traders remaining alert to policy signals from Beijing as well as upcoming US economic data that may influence capital flows and yuan stability.
Cautious outlook
Should the NFP report show weaker-than-expected job growth, the US dollar may come under additional pressure, opening the door for USD/CNH to test the 7.10 area.
Conversely, a strong or hawkish outcome from the US labour data could stall further yuan appreciation, particularly against a backdrop of ongoing macroeconomic uncertainty in China.
In this case, the currency pair may consolidate within its current range as investors reassess both Federal Reserve policy direction and China’s domestic economic resilience.
Market participants will also be watching closely for further PBoC guidance, as the central bank’s daily fixings remain a critical driver of sentiment.
Combined with signals from Chinese authorities on growth measures and fiscal support, these factors will likely determine whether the yuan can sustain its current strength or face renewed selling pressure in the weeks ahead.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on September 5, 2025 at 8:28 am, by anakin
What if a single report could open the door to trading opportunities in just minutes? This Friday, 5 September 2025, the US Non-Farm Payrolls (NFP) release could spark sharp market moves – creating volatility that rewards traders who are ready.
Jobs data shows how the US economy is performing and guides the Federal Reserve on interest rates, making NFP a key driver for the US dollar, stocks, bonds, and commodities such as gold and oil.
Last month, July’s report added only 73,000 jobs [link: https://www.bls.gov/news.release/empsit.nr0.htm], well below earlier expectations. The miss weakened the US dollar and fuelled speculation that the Fed may cut rates sooner than anticipated.
This Friday’s release could be just as pivotal. Here’s what to watch – and how you can prepare.
Understanding NFP
NFP measures how many new jobs were created in the US economy during the previous month, excluding farm work, the military, and certain government roles.
Strong job creation suggests businesses are expanding, consumers are spending, and the economy is running hot – which may keep rates higher for longer. Weak job growth often signals slowdown risks and opens the door to cuts.
Think of NFP as a monthly health check on the US economy. If the results surprise, the patient’s heartbeat suddenly changes – and markets react in seconds.
Breaking down the report: Key metrics to watch
Traders look beyond the headline figure – here’s what really matters this Friday:
Headline job gains: Consensus forecast is 75,000–78,000 jobs. This continues the slowdown seen in July (73,000) and remains well below early-year levels, showing that the labour market is losing momentum. A strong upside surprise (e.g., 120,000+) could lift the US dollar, while a print under 50,000 might trigger market concern.
Unemployment rate: Expected to remain at 4.2%, steady with July. Even small changes can influence market sentiment.
Average hourly earnings: Forecasted monthly increase is 0.3%, consistent with July. On a yearly basis, wages have risen around 3.9%. Stronger pay growth could signal inflation risks, potentially delaying Fed rate cuts.
Revisions to past data: Recent reports have seen large downward adjustments, for example, July’s revisions to May and June combined for 258,000 fewer jobs than initially reported. These revisions can move markets unexpectedly.
Labour force participation rate: Trending stable or slightly lower over the past year; July’s rate was 62.2%. Even subtle shifts can affect how unemployment figures are interpreted.
Key numbers at a glance
Market reactions to watch US dollar (USD): A strong jobs print (100K+) would likely support the dollar, especially against currencies like the euro and yen. A weak result could add to selling pressure. Bonds: Yields typically rise on strong job growth as markets price in tighter Fed policy, while a weak report pushes yields lower and fuels rate-cut bets. Shares: Stock markets often cheer weak jobs numbers if they boost rate-cut hopes. However, if the slowdown looks too sharp, concerns about corporate earnings could take over. Gold: Traditionally a safe haven, gold often rises on weak jobs data as traders price in lower yields and a softer dollar. A stronger-than-expected NFP could drag it lower. Oil: Jobs data influences growth expectations and energy demand. A weak labour report may cap oil prices, while stronger hiring could offer support.
How to prepare with VT Markets Volatility around NFP is often sharp but short-lived, making preparation essential. With VT Markets you can: Stay informed with our live Economic Calendar and instant market news. React quickly on our lightning-fast platforms designed for execution speed. Trade flexibly with access to forex, indices, commodities, and other markets – all impacted by the NFP. Manage risk using advanced tools such as stop-loss and take-profit orders. The key is timing: the faster you see the data and execute, the better you can capture opportunities or protect positions.
Stay ready, trade the NFP The US NFP release is more than just an economic update – it’s a catalyst for volatility and opportunity. With forecasts pointing to another soft jobs report, the stage is set for potential market swings that traders can use to their advantage. Be ready this Friday, 5 September, with VT Markets’ tools at your fingertips.
Oil markets remain caught between supply uncertainty and demand signals, leaving traders on alert for the next move. Speculation around OPEC+ production policy, upcoming US stockpile data, and shifting global consumption trends are all shaping sentiment, keeping volatility alive and market direction unclear.
Traders on edge ahead of OPEC+ talks
Oil prices moved lower in Thursday’s early trading session as market participants positioned cautiously before the upcoming OPEC+ policy meeting.
West Texas Intermediate (WTI) slipped 1.0% to $63.32 per barrel, while Brent crude dropped 0.9% to $66.96, wiping out the previous day’s gains.
The pullback followed a Reuters report indicating that the group could weigh further production increases. Even without an official decision, the possibility of more barrels hitting the market unsettled traders.
Uncertainty remains high, particularly with the US Energy Information Administration (EIA) due to release its weekly stockpile data later today. Investors are keen to see whether demand from the world’s top oil consumer can offset the renewed supply-side risk.
Technical analysis
Crude oil (CL-OIL) is trading at $63.26, down 0.75% on the session, and consolidating after a volatile year. In April 2025, prices dipped as low as $55.11 before surging to $77.90 in July.
Since then, the market has traded in a broad range, with the 30-day moving average flattening and shorter-term averages (5 and 10) struggling to maintain upward momentum – signalling hesitation.
Picture: CL-OIL-ECN trades at 63.263, down 0.75% from its recent level as shown on the VT Markets app.
The MACD shows a mild bullish crossover but remains close to neutral, pointing to limited strength. Key support is placed at $60, with a deeper cushion at $55, while resistance levels stand at $67 and $72.
A sustained breakout above $67 could unlock fresh bullish momentum, whereas a decline below $60 would increase the risk of revisiting the yearly low.
In the short run, prices are expected to remain range-bound, with traders monitoring OPEC+ supply decisions, US inventory data, and broader demand recovery trends.
Cautious forecast
Unless OPEC+ steps in to temper supply expectations, crude oil may remain under pressure as the week draws to a close.
A bearish EIA report showing another surprise build in US stockpiles could pull WTI closer to the $60 handle, amplifying downside risks.
On the other hand, a bullish or dovish report indicating stronger demand could provide a temporary rebound – but traders may treat any recovery with caution given the looming policy risks.
Beyond the immediate data releases, sentiment will continue to hinge on OPEC+ strategy in Vienna, as well as global demand signals from key importers such as China and India.
Currency fluctuations, geopolitical headlines, and broader risk sentiment in financial markets could also influence price direction. For now, the oil market appears locked in a fragile balance, vulnerable to both policy shifts and macroeconomic surprises.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on September 4, 2025 at 9:13 am, by anakin
What if a single economic release could trigger sharp market moves in just minutes? This Friday, 5 September 2025, the US Non-Farm Payrolls (NFP) report will do exactly that. Known for shaking markets, the NFP is one of the most closely watched indicators in the world – and a key driver of the US dollar, stocks, bonds, and commodities such as gold and oil.
Last month’s release showed that only 73,000 jobs were added, far below expectations. That shortfall weakened the dollar and fuelled speculation that the Federal Reserve may cut interest rates sooner than markets previously thought. With August’s numbers about to land, traders are once again bracing for volatility.
So, what should you look for this time – and how can you prepare?
Why the NFP matters for traders
The Non-Farm Payrolls report measures how many jobs were created in the US economy during the previous month, excluding agricultural work, the military, and certain government roles.
Think of it as a monthly health check on the world’s largest economy. Strong job growth suggests businesses are hiring, consumers are spending, and momentum is strong – conditions that can keep interest rates higher for longer. Weak numbers signal slowing activity, raising the chances of rate cuts.
Markets often respond within seconds of the release. A strong upside surprise can boost the dollar and push bond yields higher. A weak print can have the opposite effect, sparking rallies in gold or even stocks if traders expect easier monetary policy ahead.
Numbers that really move markets
While the headline job creation figure grabs attention, seasoned traders know that several other components can be just as important. Here are the main ones to watch this Friday:
Job gains
Economists expect between 75,000 and 78,000 new positions. This would confirm the slowdown seen in July and keep the labour market well below early-year levels. If hiring surprises to the upside – say, 120,000 or more – it could give the US dollar fresh strength. A print below 50,000, however, might trigger renewed concern about the economy.
Unemployment rate
Forecast to remain steady at 4.2%. Even small changes matter because they show whether job seekers are finding work. A rise to 4.3% would suggest slack is building, while a dip would show resilience.
Wage growth
Average hourly earnings are expected to climb by 0.3% month on month, with annual growth near 3.9%. Faster wage growth means households have more money to spend, but it also raises inflation risks. That could make the Federal Reserve cautious about cutting rates too quickly.
Revisions to past data
In recent months, previous figures have been sharply revised downwards. For instance, July’s report cut earlier estimates for May and June by a combined 258,000 jobs. These revisions can shift market perception instantly – sometimes more than the new numbers themselves.
Labour force participation
July’s figure stood at 62.2%, broadly stable over the past year. Even slight movements here can change how the unemployment rate is interpreted. If participation falls, a steady unemployment rate might mask underlying weakness.
How markets may react
Different markets respond in different ways, and the reactions are often immediate:
US dollar (USD): Strong jobs data usually lifts the dollar; weak numbers weigh on it.
Bonds: Yields rise on strong hiring, fall on weak reports.
Shares: Stocks cheer modest weakness (rate-cut hopes) but drop if slowdown looks severe.
Gold: Gains on weak jobs data and a softer dollar; falls on strength.
Oil: Stronger hiring supports demand outlook; weaker data caps prices.
For example, in April 2025, a strong NFP print above 200,000 boosted the dollar and pushed gold down more than 2% in one day. In July, weak numbers triggered the opposite move – gold rallied while the dollar fell.
How to prepare for NFP day
For traders, the challenge with NFP is not just understanding the numbers but also reacting quickly. Market moves are often sharp yet short-lived, which means preparation is essential.
Here are some practical steps:
1. Stay informed: Keep an eye on VT Markets’ Economic Calendar for real-time updates. This ensures you don’t miss the release time or forecasts.
2. Use fast platforms: Execution speed can make all the difference during NFP volatility. VT Markets’ platforms are designed to help you react instantly.
3. Diversify your approach: The NFP doesn’t just affect currencies. With VT Markets, you can access forex, indices, commodities, and more – all of which can move when the data is released.
4. Manage your risk: Tools like stop-loss and take-profit orders allow you to set boundaries in advance. That way, you can protect your account from unexpected swings while keeping the chance to capture opportunities.
Imagine you are trading the EUR/USD. If the NFP comes in stronger than expected, the US dollar could rise sharply, pushing EUR/USD lower. Without a stop-loss, a sudden drop could erode your position quickly. With a stop-loss in place, you can limit your downside while leaving room to benefit if the report surprises the other way.
Turning volatility into opportunity
The US Non-Farm Payrolls report is more than a routine piece of data – it is a monthly catalyst that can set the tone for global markets. With forecasts pointing to another modest increase in jobs, expectations are already leaning towards a softer labour market. That means any surprise, whether stronger or weaker, could send ripples across currencies, bonds, shares, and commodities.
For traders, the opportunity lies in preparation. By knowing which numbers matter most, anticipating potential market reactions, and having the right tools at your fingertips, you can turn this event into a chance to capture new opportunities – or protect your positions.
Volatility brings both risks and rewards. This Friday, 5 September, stay ready with VT Markets and make sure you don’t miss the moves that NFP can bring.
As part of our commitment to provide the most reliable service to our clients, there will be maintenance this weekend.
Maintenance Details:
Please note that the following aspects might be affected during the maintenance:
1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.
2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss, and Take Profit will be filled at the market price once the maintenance is completed. It is suggested that you manage the account properly.
3. During the maintenance period, VT Markets APP will not be available. It is recommended that you avoid using it during the maintenance.
4. During the maintenance hours, the Client portal will be unavailable, including managing trades, Deposit/Withdrawal and all the other functions will be limited.
The above data is for reference only. Please refer to the MT4/MT5 software for the specific maintenance completion and marketing opening time.
Thank you for your patience and understanding about this important initiative.
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Written on September 4, 2025 at 8:26 am, by anakin
Political and economic risks are shaping sentiment across global markets. US tariffs and Fed scrutiny fuel uncertainty, UK gilts rally as sterling weakens, while Japan and Turkey grapple with political instability. In Argentina, authorities step in to support the FX market amid pressure on bonds and the peso.
KEY INDICATORS
Dollar strength driven by US yields
DXY +0.66% to 98.327, marking its first gain in six sessions.
Long strategy: Consider tactical longs only if price breaks and holds above resistance with strong follow-through; target 200.00, stop-loss below 199.25.
Short strategy: Sell into rallies near 199.25 resistance; target 198.05 initially, extend back to 197.80 if momentum stalls; stops above 200.00.
Range trade: Buy near support and sell near resistance if price consolidates between 197.80–199.25.
Risk management: Keep stops tight given weakening bullish momentum.
NEWS HEADLINES
Global market and policy updates
Trump to hold emergency meeting on tariffs on Wednesday; Supreme Court appeal expected, with risk of tariff withdrawal and refunds if the ruling goes against him.
Federal Reserve Governor Cook under scrutiny as his declared primary residence is reportedly being let to tenants.
US regulators ease financial oversight, reducing the frequency of bank stress tests
UK 30-year gilt yield hits highest level since 1998; sterling slides on fiscal concerns.
Russia and the US to hold diplomatic consultations, Kremlin aide confirms.
Corporate and regional developments
Nvidia announces 2026 GTC conference to be held in San Jose, 16-19 March.
US judge rules Google is not required to divest Chrome or Android.
Japan’s Prime Minister Ishiba apologises after LDP election loss, as party officials consider resignations.
India to launch commercial semiconductor production by end-2025.
India’s tax board proposes raising EV tax on mid-range models from 5% to 18%.
Financial markets move in cycles of growth and decline. When prices rise steadily over time, traders and investors call it a bull market. Understanding what a bull market is, how it starts and ends, and how to respond to it can help you make better trading decisions. In this guide, we explain the bull market definition, its stages, advantages, risks, and historical examples, supported by real-life case studies and strategies you can use today.
What Is a Bull Market?
A bull market refers to a financial market where prices are rising consistently over a sustained period, usually by 20 percent or more from recent lows, across a broad range of securities. While the term most often applies to the stock market, bull markets can also occur in precious metals, bonds, indices, and cryptocurrencies.
The bull market meaning goes beyond price increases alone. It reflects broad investor confidence, positive economic growth, strong corporate earnings, and expectations of continued expansion. Positive market sentiment and investor expectation of future gains drive demand for securities, resulting in higher prices and rising stock prices. During these periods, optimism and demand drive markets higher, often leading to new all-time highs.
Example: Between March 2009 and February 2020, the S&P 500 rose by more than 400 percent. This 11-year period became the longest bull market in US history, fuelled by central bank support and a recovering global economy.
Key Characteristics of a Bull Market
Several features typically define a bull market:
Sustained upward trend: Markets climb steadily rather than through short-lived spikes.
High investor confidence: Optimism about future gains attracts more participants.
Corporate growth: Earnings, mergers, and IPOs accelerate.
Increased liquidity: More capital flows into markets, driving prices higher.
Low interest rates: Cheaper borrowing encourages investment and fuels growth.
Stages of a Bull Market: How It Starts and Ends
Bull markets do not begin suddenly. They form gradually as conditions improve and investor sentiment strengthens. Analysts often describe three phases:
1. Accumulation Phase (Start of a Bull Market)
This first stage usually occurs after a recession or market downturn, when prices and valuations remain low. Institutional investors and insiders start buying, anticipating a recovery before the general public notices. Sentiment is still cautious, but markets begin to stabilise and edge upward. For example, in March 2009, after the Global Financial Crisis, large funds quietly re-entered equities, sparking the longest bull run in US history.
2. Public Participation Phase (Middle of a Bull Market)
The second stage is marked by improving economic data, stronger corporate earnings, and rising investor optimism. Retail investors begin to participate more actively, volumes increase, and prices climb faster. This tends to be the longest and most profitable part of a bull market, as confidence spreads widely across the market.
3. Excess Phase (End of a Bull Market)
The final stage is often driven more by speculation than fundamentals. Prices climb to stretched valuations, optimism turns into euphoria, and investors begin to overlook risks. During this speculative phase, some investors adopt more aggressive trading strategies in pursuit of quick gains. Warning signals, such as slowing earnings or rising interest rates, are often ignored until sentiment suddenly shifts. A well-known example was the dot-com boom of the late 1990s, which ended abruptly in 2000 when overvalued technology stocks collapsed.
Historical Examples of Bull Markets
Bull markets tend to follow periods of stress or breakthrough innovation, then build as confidence and earnings improve. The snapshots below show how different catalysts can spark multi-year advances across cycles and sectors.
1. Post-War Expansion (1949 to 1966)
After World War II, the United States entered a period of rapid industrial growth and rising consumer demand. Stocks climbed more than 400 percent across this 17-year stretch as productivity gains and a young workforce supported profits. This bull market was also marked by the rise of new consumer industries, from automobiles to household appliances, which laid the foundation for decades of economic prosperity.
2. The Long Bull Run (1982 to 2000)
Falling interest rates, deregulation, and the personal-computer and internet revolutions powered a broad advance. Equities set repeated records as technology and globalisation lifted earnings for nearly two decades. By the late 1990s, investor enthusiasm reached historic levels, leading to the dot-com boom, which eventually became one of the most famous market bubbles in history.
3. Post-Global Financial Crisis Rally (2009 to 2020)
Ultra-accommodative monetary policy, improving balance sheets, and steady job growth drove a powerful recovery. A significant drop in unemployment rates and borrowing costs also contributed to the market’s rebound. From the March 2009 low to early 2020, the S&P 500 rose more than 400 percent, marking the longest US bull market on record. This rally also showed how central bank actions, such as quantitative easing, could fundamentally change investor behaviour by keeping borrowing costs near zero for over a decade.
4. Pandemic Recovery Bull Market (2020 to 2021)
Massive fiscal support and near-zero policy rates sparked a swift rebound from the 2020 crash. The injection of money through government stimulus and fiscal support increased liquidity in the markets, helping to fuel the rapid market rebound. Technology and healthcare led, with the NASDAQ gaining more than 40 percent in 2020 as remote work and digital adoption accelerated. This short but sharp bull market highlighted how quickly sentiment can shift when government policies and innovation align, though it also raised concerns about asset bubbles forming in high-growth sectors.
Advantages of a Bull Market
Bull markets provide investors with strong opportunities that can significantly shape financial growth:
Portfolio growth: Rising prices lift the value of stocks, ETFs, and other investments, helping traders and long-term investors build wealth faster. During long bull runs, equity indices like the S&P 500 can more than double in value.
Improved confidence: Investors, businesses, and consumers all become more optimistic about the economy. Higher confidence often leads to greater spending, which further supports corporate profits and market expansion. Investors also expect companies to pay dividends during bull markets, which further boosts confidence and supports higher prices.
Easier access to capital: Companies can raise funds through stock offerings or debt issuance at favourable terms. This, in turn, encourages expansion, innovation, and job creation, which sustain the upward cycle.
Positive economic feedback loop: Rising asset prices improve household wealth and spending power, reinforcing economic growth and extending the duration of the bull market.
Example: Between 2009 and 2020, the S&P 500 gained more than 400 percent, reflecting how a prolonged bull market can create wealth for investors, strengthen consumer confidence, and provide companies with the resources to expand aggressively.
Risks and Challenges in a Bull Market
Even though bull markets are attractive, they carry important risks that investors must recognise:
Overvaluation: Prices often rise faster than fundamentals like earnings and cash flow. This can leave markets vulnerable to corrections when reality catches up.
Speculative bubbles: Investor enthusiasm may shift toward hype-driven assets. When buying is based more on momentum than value, bubbles form — and they can burst quickly.
Complacency: Strong gains can make investors overconfident, leading them to ignore risk management practices such as diversification or stop-loss orders. This increases exposure when conditions turn.
Sharp reversals: Because valuations are stretched and optimism is high, even small shocks — such as interest rate hikes or geopolitical tensions — can trigger outsized market reactions.
Example: Before the 2008 financial crisis, rising property values and cheap credit gave households and investors false confidence, only for the bubble to collapse and trigger a global downturn.
How Traders and Investors Respond to a Bull Market
During a bull market, traders and investors often adjust their approach to take advantage of rising prices while still managing risk:
Buy and hold: Many investors accumulate quality stocks or ETFs and hold them for the long term. This strategy benefits from compounding as markets trend upward over several years.
Sector rotation: Traders often shift into industries that lead during a rally, such as technology, green energy, or consumer discretionary. Rotating into strong sectors allows portfolios to capture higher returns during specific phases of the bull market.
Trend following: Technical traders use tools such as moving averages, breakout levels, or momentum indicators to ride the upward wave. This helps them stay invested while prices continue to climb.
Using leverage carefully: Some traders increase exposure through margin or leveraged products to amplify gains. While this can boost profits in a bull market, it requires discipline to avoid overexposure if conditions change suddenly.
Example: During the 2023–2024 AI-driven rally, companies like NVIDIA saw their share prices climb more than 200 percent. Investors who either held long-term positions or used trend-following strategies benefited most, while those who applied leverage selectively could enhance returns without taking excessive risks.
Trading Strategies for Bull Markets
Traders and investors use a range of trading strategies to take advantage of rising markets. In a bull market, buyers often make purchases with the expectation of short-term gains, viewing each transaction as an opportunity to capitalize on rising prices. The right approach often depends on risk tolerance, time horizon, and market conditions.
1. Buy and Hold
This is the simplest strategy, where investors purchase quality stocks or ETFs and hold them throughout the bull market. It allows them to benefit from long-term gains without being distracted by short-term price movements.
Example: Investors who held Microsoft shares from 2009 through 2020 enjoyed steady compounding returns during one of the longest bull markets in history.
2. Dollar-Cost Averaging
In this approach, investors commit a fixed amount of capital at regular intervals regardless of market level. This reduces the risk of buying at a peak and steadily builds exposure as the bull market progresses.
Example: Someone who invested $1,000 monthly in the S&P 500 ETF during the 2010s built a sizeable portfolio by the end of the decade.
3. Breakout Trading
Breakout traders look for assets that rise above resistance levels with strong trading volume. Entering at these breakout points allows them to ride momentum and capture profits as the trend strengthens.
Example: Traders who entered Tesla when it broke through $200 in 2020 capitalised on its sharp upward surge.
4. Retracement Additions
Rather than chasing prices at new highs, some investors add to their positions during short-term pullbacks. This improves average entry prices while staying aligned with the broader trend.
Example: Buying the NASDAQ during brief 10 percent corrections in 2017 allowed investors to benefit as the index pushed to new highs.
5. Full Swing Trading
Swing traders aim to profit from both minor and major price moves within the overall uptrend. They buy on dips, sell on rallies, and re-enter positions, maximising returns throughout the bull cycle.
Example: In the 2021 crypto bull market, swing traders repeatedly bought Bitcoin on $8,000 to $10,000 dips and sold during sharp rallies.
6. Using Leverage Carefully
Some traders magnify exposure through margin or leveraged products. While leverage can significantly boost profits in a bull market, it requires strict discipline to avoid heavy losses if the market turns.
Example: Investors who used leveraged ETFs during the 2020 rebound doubled their gains, but mistimed positions faced steep drawdowns.
Bull Market vs Bear Market
Bull and bear markets are two opposite phases of the financial cycle. Recognising the differences between them is essential for understanding market behaviour and choosing the right strategy.
Feature
Bull Market
Bear Market
Price Trend
A sustained rise of 20 percent or more, often lasting months or years. Prices steadily move upward across most sectors.
A sustained decline of 20 percent or more, often accompanied by sharp drops in valuations across multiple asset classes.
Investor Sentiment
Optimism and confidence dominate, with investors willing to take on more risk and expect continued growth.
Fear and caution drive decisions, with investors selling assets or moving to safer havens like bonds or cash.
Economic Signals
Expanding GDP, low unemployment, and rising consumer spending create a supportive environment for growth.
Contracting GDP, rising unemployment, and weaker consumer demand signal economic stress.
Strategy
Investors focus on buy-and-hold, trend following, and building exposure to growth opportunities.
Traders and investors turn defensive, using hedging, short selling, or shifting into safe-haven assets to protect capital.
Common Mistakes Traders Make During Bull Markets
Even during strong uptrends, traders and investors often make avoidable errors that limit returns or increase risk:
Over-leveraging positions: Using excessive margin or high leverage can magnify gains, but it also exposes portfolios to heavy losses if the market pulls back even slightly.
Chasing hype stocks at inflated valuations: Many investors get caught up in popular trends and buy assets long after they have surged, leaving little room for further upside and a high risk of reversal.
Ignoring diversification: Concentrating too heavily in a single stock, sector, or asset class may work temporarily, but it leaves portfolios vulnerable if that area underperforms.
Letting FOMO override discipline: Fear of missing out often leads to impulsive buying without proper analysis or risk controls, which can undermine long-term performance.
In Summary
A bull market is defined by rising prices, optimism, and strong economic conditions, often lasting months or even years.
Bull markets move through stages — they start with accumulation, gain strength through public participation, and often end in excess.
They provide opportunities for portfolio growth, higher confidence, and easier access to capital, but risks like overvaluation, bubbles, and complacency remain.
Traders respond with strategies such as buy and hold, dollar-cost averaging, breakout trading, retracement additions, swing trading, and careful use of leverage.
Understanding bull market vs bear market and avoiding common mistakes helps investors capture gains while protecting against downside risks.
The term bull market refers to a period of rising prices that signals strong investor confidence and economic optimism. It generally means markets are supported by growth, low unemployment, and healthy corporate earnings, making it a favourable time for long-term investing.
2. How long do bull markets last?
Bull markets can last from several months to more than a decade. For example, the 2009–2020 US bull market lasted nearly 11 years.
3. Can you predict when a bull market will end?
It is difficult to predict exactly. Warning signs include slowing economic growth, rising interest rates, and stretched valuations.
4. Are crypto bull markets riskier than stock bull markets?
Yes. While both can deliver large gains, crypto bull markets tend to be more volatile, with sharper rises and steeper corrections.
5. What triggers the start of a bull market?
Bull markets often begin after periods of economic slowdown or recession. Key triggers include improving GDP growth, strong corporate earnings, and accommodative central bank policies such as lowering interest rates or launching stimulus programs.
6. Do bull markets only happen in stocks?
No. Bull markets can also occur in other asset classes such as commodities, bonds, and cryptocurrencies. For example, gold entered a bull market in 2020, and Bitcoin saw a bull market in 2021 when it surged above $60,000.
7. Is it safe to invest during a bull market?
Bull markets offer strong opportunities, but safety depends on strategy and discipline. Investors should diversify, avoid chasing hype stocks, and use risk management tools like stop-losses to protect gains.
8. How can beginners take advantage of a bull market?
Beginners can start with simple approaches such as dollar-cost averaging into index funds or practising strategies in a demo account. This helps build confidence while reducing the risk of entering the market at an unfavourable time.
Written on September 3, 2025 at 10:36 am, by jason
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Written on September 3, 2025 at 9:56 am, by anakin
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