However, the method I'm about to share with you can increase your chances of spotting a market bottom early enough to cash in on the first big moves.
A stock market bottom will always signify the end of a Bear Market. A Bear Market is a condition where stock market prices have been falling over an extended period of time.
The start of a Bear Market is generally defined as a major stock market index, or indices, dropping in price by 20% or more over at least a 2-month period of time.
The length and severity of Bear Markets vary, but one thing is for certain, people's investment accounts drop in value substantially.
No one likes losing money, so overall Bear Markets are not welcomed with open arms.
There is however, a small group of sophisticated investors that rejoice during Bear Markets because they realize that everything is on sale.
They also realize that fortunes are either lost or made during Bear Markets and they plan on being on the gain side of the equation.