Due to the declining values of the currencies that one holds as a security, they develop a kind of negative thought and they fail to accept that the trend might improve.

When the investors are predicting a continual decline in the value of the currency, there will be a lot of selling of the currency due to the loss of the hopes with which the stocks were initially purchased for.

A bear market has 3 stages:
• Decline in the value of the securities.
• The levels of business activities and profits go down.
• The securities are liquidated regardless of their underlying value.

The trend of a bear market will last from less than one year to even several years. Margin calls and forced liquidation is a common sight in a bear market.