Day 1 – Bulls, Bears, and Market Movers
Bears and Bulls are terms used to describe market trends and the general mood of investors. Here’s a simple way to think about it:
Bulls (Optimists):
- A Bull Market is when prices are going up over time, and investors feel confident about the market.
- Bulls believe the market will continue rising, so they’re eager to buy and hold stocks to make a profit as prices climb.
- Think of a bull attacking by thrusting its horns upward—just like prices in a bull market!
Bears (Pessimists):
- A Bear Market is when prices are going down over time, and investors are feeling cautious or even scared.
- Bears believe the market will drop further, so they might sell stocks or short-sell (bet on prices falling) to protect their money or profit from the decline.
- Picture a bear swiping its paw downward—that’s what happens to prices in a bear market!
The Bottom Line:
- Bulls = Optimism, rising markets, buying opportunities.
- Bears = Caution, falling markets, selling or shorting opportunities.
It’s normal for markets to go through both bull and bear phases—it’s all part of the trading game!