Bulls and Bears in the Stock Market

Bull - bull is an animal which, when enraged charged fury and force the other animals it is almost impossible to put a stop to it naturally. Market share, it is a symbol of investor optimism and confidence. Bear - Bear, on the other hand, is more gentle and laid back animals without a known quality of aggression. The share of the market, the bear is a symbol of pessimism and lack of confidence.

Bulls have a market share of operators who believe that stock prices will go up and therefore in accordance with the position that the long (buy) positions. It helps to push prices further upwards. So the bulls are symbols of the overall optimistic trend in the market. This helps create a positive environment in which stock prices rise. Bears, on the other hand, operators who predict that stock prices will go down and how to take a short (sell position). Bears and drag down prices.

now returns to the question of why stock prices vary so much? This is because the price at any moment the price is the interaction of the bull and bear market. If the Bulls win a price increase if prices fall brings victory. Understanding the micro level, at any stock price, there is a group of operators who sell the shares because they believe that prices can go down and there are another set of operators who feel prices will go up and buy at that price. So by all means there is always a force pulling down or pushing up. Thus, dominance of bulls or bears in a period of time is called a bull phase or phases, or bear.

bull phase or bear phase can be categorized as short, medium and long term. There are many factors that affect the bulls and bears. These factors can be micro-company that is related to the specific performance of the company / poduzeća.Drugih macro-factors are related to the economy as a whole, growth rate, inflation rate, GDP rate, etc. These factors affect the emotions of investors how to analyze the growth potential of enterprises, the overall trend of the economy and the liquidity of the stock market. These are factors that determine investor confidence, and thus prices.

bear the greatest stage in the Depression, when investor confidence is fully nestala.Bikovi forecast strong economic growth, good and consistent industrial performance. These factors only come to play in the long tem staze.Kratke factors are regulated by more than an immediate response to some immediate triggers. For example, the quarterly increase in the number of firms / companies can propel the Bulls dominate pushing prices upwards. Likewise, fear of a slowdown in the economy can only cause stock prices to go down uu the short term.

bulls and bears are basically represent the sentiments prevailing in the market.