Bulls vs Bear markets (forex market)

Bulls vs Bear markets (forex market)

Bears and bulls were literally once fierce opponents when it was popular to put them into an arena to fight one another. Matches using bulls and bears took place in the Elizabethan era in London and were also a popular spectator sport in ancient Rome. “Bulls make money, bears make money, pigs get slaughtered” is an old Wall Street saying that warns investors against excessive greed. Pigs are investors whose goal is to make the most amount of money in the shortest amount of time and are known to either take on high degrees of risk or overlook risk to make a profit.

Bulls

The bulls are traders who trade based on upward trends. The reason the bull market is represented by a bull due to the way a bulls fight.  Bulls tend to fling up their opponent when they fight. Bulls tend to drive their horns up into their prey, hence representing the upwards trend of the market that bull trader search for.

Bears

The bears are traders who trade on downward trends The reason the bear market is represented by a bear due to the way a bear fights.  Bears tend to throw down their opponent when they fight. Bears tend to swipe their paws downwards upon their prey, hence representing the downwards trend of the market that bearish trader search for.

In the stock market

The bear market represents pessimistic and optimistic view point towards a market. If people are pessimistic, believing that stocks are going to drop, they are called “bears.”

Written by James Ogunsanwo