As a beginner to the world of trading it is handy to understand some key phrases.

Are you talking Bull ?
A bull market is a market that has it primary trend as going upward. This means in general the key Indexes are rising. Why is it called a Bull, no one really knows the true origin, however what is important is how to remember what a bull market means.

Imagine if you will, you are being attacked by a bull, the bull would charge towards you with its head down and then attack with its horns surging upwards. This is the same a a Bull Market, attacking in a strong upward move. The same analogy applies to being Bullish on a stock, or in general being a “Bull” means you are optimistic.

Although this cute picture of a bear cub is charming, “Bear Markets” are anything but restful, especially for someone invested in the Stock Market. A bear market means Indexes are in general in a downward trend.

The simplest way to remember this, is to envision a bear attacking you. It would be standing on its hind legs towering above you, and reaching out a clawed paw, it would take a mammoth swipe down at you.

Down is the direction of the bear, and people who have turned bearish on a stock are also holding the pessimistic view that the stock will be moving downwards in price.

 

 

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