Players in The Stock Market
There are
basically four types of players in the stock market, each struggling to make money base on how he/she
understands the market, they are the
bulls, the bears, the chickens and the pigs,
each of this types of players are
named base on how they behave in the market,
·
The bulls: the bull buy stocks when everything
in the market is good, people are finding jobs, gross domestic product (GDP) is
increasing, consumers are spending money and stocks are rising. An investor who
thinks that certain stocks will rise is said to have bullish outlook and will
purchase stocks thinking that he will sell it at higher prices and he is said
to have bullish outlook. An investor with bullish outlook is optimistic, they
always predict goods thing about
the market and expecting to benefit
from it. However bull market does not last forever and may lead to losses to
investors if stocks are overvalued.
·
The bear: the bear is when stocks values are
declining, the economy is bad, unemployment is high, recession is looming and
stock’s prices are falling. It start with a sharp drop in stock prices though
the trend may change and stocks may begin to rise slowly, but will continue
where stocks will be falling continuously, it is very difficult for investors
to pick stocks in the bear market, An investors who think that the market will
fall, is pessimistic and is said to have a bearish outlook. You can make money
in the bear market in two ways, either by cost averaging or short-selling or
you wait till when the bear market is nearing end to buy the stocks in
anticipation of bull market.
·
The chicken: The chickens are those set of
investors that are afraid to invest in the stock market. They are fearful and
very suspicious of the even the bull market, they invest only little and
therefore receive only little profits; the chicken has the desire to invest but
their fears overpower their interest.
They are afraid take any form of risk and therefore turn their attention
to the security market or simply get out of the market. Though it is advisable not to invest in what
will make you sleepless but with zero investment you are guaranteed zero
returns (profits).
·
The pigs: pig market is a high risk big score
or big loss positions, they are greedy and emotional about their investment and
often get slaughtered in the market. Pigs also called the prone-risk investors;
pigs are the get-rich-quick types of investors and can jump into any stocks without conducting
the necessary research. They are impatient
and greedy and are ready to pick stocks on hot tips. It is mostly from their
losses that bulls and bears make the money.
They are referred by professional investors as the passive income generators (pigs).
For you to succeed in stocks business you have
to pick between the bull and the bear ,
because the bull makes money, the bear makes money, the chicken run away while
the pig just get slaughtered.
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