Louise Queen

Bulls, Bears and the rest of the Farm!

In Uncategorized on June 4, 2009 at 11:00 am
Wall-Street-Bull

Wall-Street-Bull

As you all know Cameron is now working trading the stock futures and forex markets and, being keen to understand what he is actually doing, I did a little research. Now I’m not going to go into details, as unless you have a thing for numbers and a keen eye when it comes to graphs you’ll probably end up even more confused. What I do want to tell you about, however, are the Bulls, the Bears, the Chickens and the Pigs!

Above is a picture of the famous Wall-Street Bull. On Wall Street the Bulls and the Bears are in a constant struggle… Bull(ish) traders think positively and try and drive the markets upwards by buying stock, whilst Bear(ish) traders take the opposite stance and sell the market to drive it down.

Bulls & Bears

Bulls & Bears

A bull market is when everything in the economy is good, there are plenty jobs etc and stocks are rising. Picking stocks during a bull market is easier because everything is going up. However, this situation cannot last forever and sometimes it can lead to stocks becoming overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a “bull” and is said to have a “bullish outlook”.

A bear market is pretty much the opposite, the economy is bad and stocks are falling.

I believe that there is only a Bull on Wall Street (and no bear) because of Wall Streets perceived aggressive nature. Lots of positive trading! I did manage to find this photography of a bull and a bear but I’m not sure where it was taken or which stock exchange this is near… does anyone know?

B&B

B&B

As well as Bulls (known for charging) and Bears (seen as being ‘lazy’ and cautious) other animals exist on the Stock Exchange farm. Chickens are afraid to lose anything. Their fear overrides their need to make profits and so they may end up doing badly. While it’s important to try and limit the risks you take, you will never make any money if you don’t take any.

Then there are the Pigs – high-risk investors looking for the one big score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investments. Professional traders love the pigs, as it’s often from their losses that the bulls and bears reap their profits!

Bulls, bears, chickens and pigs – now that would make for some interesting farming!

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