A "Bear Trap" is a financial term used to describe a situation in the stock market where a security appears to be in a downward trend, leading investors to believe it will continue to fall. This can cause many to sell their shares, but the price may suddenly rebound, trapping those who sold at a loss. This phenomenon often occurs during periods of high volatility, where market sentiment can shift rapidly. Investors should be cautious, as falling prices can create panic, but a quick recovery can catch many off guard, leading to potential losses for those who react impulsively.