What is Bear Trap in Forex Trading?

Table of Contents

Bear trap is a financial trap set up by intelligent investors to force small investors to sell their investment assets such as crypto, stock or commodity by investors. Investors set this trap by heavily selling their investments causing artificial bear trap. Then, naive investors sell their investments as they belive upward trend has stopped. People selling at this point fear that they will lose their invested money due to future expected drop in their investment value.  Cunning investors use this situation to buy out investments at low price and then realse this trap. Therefore, investment prices start  climbing  after bear trap ends.

Share with your friends...

Facebook
LinkedIn
Email
X
WhatsApp
Pinterest
Print
Telegram