What is a BULL BEAR TRADE ?
Answers:
It's probably a market-neutral manner of trade where on earth you set off shorts and longs equally by buying stocks of companies that you chew over will dance up within price and selling short stocks of companies that you construe will budge down within price.
This path, if the integral marketplace unpredictably lurches one track or the other. Then you won't loose or create much money.
With this considerate of set up, you will trademark money one and only when investors mediate the celebration effectiveness of these companies and trade their stocks fittingly.
Actually, this is the class of trading lots of the computerized Quant funds be and probably still are doing. The nation who set up these funds be so sure that this strategy cannot possibly loose money that they've maxed out their edge accounts and borrowed as much money as possible to amplify their gain.
But the unthinkable did come to surpass. Many of these Quant funds lost huge amounts of money just now (more than 30%). And their manager have to scramble and supply their stocks resembling crazy contained by directive to cover their edge call. And some of these funds have to be rescued next to currency injections from their managing companies such as Bear Stearns and others.
This quality of strategy can work ably within some open market conditions. But you never know when flea market conditions will transformation contained by such a instrument that this strategy will loose money for you.