I have been thinking since morning on which topic to write an article. But nothing was coming to my mind. And then electricity went off in the morning. I spend four hours without electricity. I cancelled my plan to write an article. Then when the electricity came, I open the noise.cash. I scrolling the page of noise.cash . When I stopped someone post, in which he tells about BCH bull market. Someone ask to him that
What is bull market?
After heard this word, I decided to write an article on this topic.
After hearing these two words ( bull and bear) the first thing that comes to mind is
Why they were named of animals?
And why is the market just associated with bull and bear?
Why they could have not been named after another animals?
Actually bullish and Bearish terms are used as fast way to describe the market sentiment whether in upward or downward trend.
Bull market ( upward pattern):
You may have noticed that The bull raises his horns from the bottom up when he attacks someone. Similarly when market goes fast from bottom to upward known as bull market. Going from the bottom up means that the market is growing. The value of market is increasing. Peoples investment are increasing and People's feelings are getting stronger that everyone here is getting profit so he will also take profit from it. Here the sentiment of investor is optimistic (hopeful about the future).
If an investor think that a stock will go up it's means he is bullish.
We cannot call the market bull when they increase slowly. Just fastest increasing of market is called Bull market.
Bear market (downward pattern):
Bear market is the opposite of bullish market. Here the economy is not doing well. Here mostly people are looking to sell than buy. As a result the share price will be drop. We know that Bears always stands up and attacks the bottom. And the one who is being attacked will fall down. In bear market the price goes down.
If investor think that the stock will go down it's means he is bearish.
When do we know when the market is bear?
When market more than 20% below their high peak. Then known as bearish. The loss of 10% 15% is not said as bearish. Here the sentiment of investor is pessimistic ( bad things are more likely to happen).
And the market is not just associated with these two terms. The word pig and wolf also used in market. Pig means that we loss in market and wolf market means that someone do illegal work in market. In other words , people who make money by scamming.
If you want to learn more about wolf market then as a learner I prefer you to watch the movie "wolf of wall Street". This is the true story of Jordan Belfort. He earned millions in his investment company by financial fraud.
These four terms we hear a lot in stock market. Especially bull and bearish are more usable terms. So, you are bear when you believed that price asset will go down and bull if you are optimistic.
I hope guys, you learn something from my article. May be here the mostly people know about bull Vs bear market. But I effort a lil bit to tells you about the knowledge of both terms. I hope you like it. May God bless you a hundredfold.
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Ohh, today I am able to know about its history. Well, great job buddy. Have a good night.