Posts Tagged ‘what does bull and bear mean’

Meaning of the bull and bear market

Tuesday, July 14th, 2009

The bear and the bull are two animals used to describe market sentiments from decades. The fighting styles of the bear and the bull are used to explain the bear and the bull market conditions. The bull fights his prey with his horns by an upward movement and this signifies an upward movement of stocks in the stock market today. The bear is known to tear down his prey with a downward movement and so you can see that the term bear run is used when the market is heading down or declining.

Bulls are described to be headstrong and fearless and so this best describes the upward trends in the bull market. The bear is slow and they are known to be hibernators and hence it aptly describes the sluggish and downward stock market. A bear investor is generically pessimistic whereas the bull investor is generally very optimistic.

The overall trends of the stock market are best described by the word BEAR MARKET and BULL MARKET.  In a bear market the market is seen to decline over a certain period and traders generally sell quickly to save big losses. The Great Depression during the 1930s saw huge losses to investors and hence investors and traders are very cautious during the bear run.

During the Bull Run, the prices of stocks increase steadily and sometimes steeply too. This builds up confidence and optimism in the investor. Stock prices rise dramatically and traders book profits too. The bear run and the Bull Run are influenced certainly by the economic conditions locally, domestically and internationally. The stocks take a beating during recession and the stocks rise during the economic boom.

If you are a new investor; be cautious while trading both in the bear market and bull market conditions. There are many sites available in the internet which will give you valuable stock market tips. You can ask for some expert or stock analysts to provide you with information about companies and their stocks.

Don’t forget that you have to be strong headed, patient and determined if you want to achieve success in the stock market. Patience pays off, and be persistent too. Losses are inevitable because the market itself is volatile but wait for the market to rise and trade carefully… Research and more research will help you stay grounded and fetch you good profits.