Sunday, October 2, 2011

Bulls and Bears

BULLS

Bulls are optimistic investors who are presently predicting good things for the market, and are attempting to profit from this upward movement.
Example : If you are bullish on the ACC you will attempt to profit from a rise in the ACC by going long (Buy 1st and sell later) on it. Bulls are the exact opposite of the market's bears, who are pessimistic and believe that a particular security, will suffer a decline in price.



BEARS
  • Bears are generally pessimistic about the state of a given market.
  • An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices.

Example : If an investor were bearish on the ACC they would attempt to profit from a decline in the market. By going short (sale 1st and buy later)

Things to Remember :
  • Market is demand & supply.
  • Buy and sell is also depending on the fair value of share & extent of over valuation & undervaluation.
  • For making a decision of investment investor may have to depend on Fundamental & Technical analysis.
  • Investor have to guard against wrong timing regarding both buy & sale decision, otherwise they will burn their fingers.

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