Market Mentalities: Bulls Vs. Bears
being bullish or bearish in finance means that you are either optimistic or pessimistic about the current market climate. bulls are people who think the market or a particular stock is going to rise. if investors are bullish about a stock, they ? behind that stock by investing in it. there is, on the other hand, ? or an individual security is going to lose value. bearish investors will sell or take a short position in the security or index that they believe is doomed. generally, investors shift ? bearish and bullish modes, faced on many factors including global economic concerns, national economic data and corporate financial performance. these too diverse outlooks create the market. to have a working system, we need people willing to buy and people willing to sell. since bears often think the market or their positions are going to lose value, they will sell to mitigate losses. bulls, on the other hand, will perceive the same economic indicators as a good time to buy, and they'll pick up what bears are selling so that they can profit from the upward momentum that's anticipated. an investor can be bullish about the overall market but bearish on a given stock. in this case, a probable trading strategy will be ? to take a short position ? in the stock and buy a market portfolio or an instrument that tracks the market. the opposite situation can be true as well. so, ? these iconic animals of wall street consistently take ? views on the market. wise investors know that both mindsets are needed for successful trading.