Surely every participant in trading in the financial markets, be it a trader or an investor, has repeatedly come across such expressions as "bull market", "bear market, as well as" a bullish trend in the market ", etc. To an inexperienced beginner, all these exchange terms may seem complicated, strange and incomprehensible. But don't be in a hurry to despair! Everything is not as complicated as it might seem at first glance. So what is it all about? Who are bulls and bears in relation to the stock market?
Understanding stock terms
"Bulls" (English bull) - traders of securities, trying to capitalize on the growth of the value of assets. The name is based on the idea that the bull, attacking the enemy, raises him with his horns up.
"Bears" (English bear) - trading participants who make money on the fall of the market. In this case, it is believed that when attacking an enemy, the bear, on the contrary, presses him to the ground. If the market is dominated by “bulls”, that is, there are massive buy orders in the exchange's trading system, and the rate is growing, then such a market is usually called “bullish”. And if sellers prevail and the rate falls, then it is considered “bearish”.
Wall Street Bull
Stock animals became so popular, investors and traders liked their images so much that in New York on Wall Street, in the very heart of the financial world of the United States of America, the image of one of them was embodied in a sculpture. It is not difficult to guess that according to the author of the sculpture, the bull is depicted as very decisive, he is ready to once again storm the financial peaks. In the financial world, the image of a bull is a symbol of courage, assertiveness, sometimes bordering even on recklessness.
Other exchange animals
Of course, bulls and bears are the well-known favorites of the financial markets. Their images are probably known to all, without exception, participants in trading on the exchange. But what do we know about stock exchange hares, sheep and even pigs? How do these bidders behave? It is customary to call hares and sheep very cautious traders, and both are not brave enough to make really serious money on the stock exchange. However, if sheep prefer to make deals rarely and very carefully choose the asset to be traded, then hares are at least capable of regularly making money on minor fluctuations in financial assets. The hare, as a rule, always gets its 2-3%. Pigs are affectionately called those traders who prefer to be greedy and keep this or that asset, as they say, to the last.