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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.
Video Bull trap
See also
- Economic bubble
- Stock market bubble
- Speculation
- Boom and bust
- Market trend
Maps Bull trap
References
- Setting the Bull Trap (investorinsight.com)
- Don't Fight a Bull Trap (stocks-simplified.com)
Source of the article : Wikipedia
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