Market participants: Bulls and Bears

In this article, we will discuss Market participants: Bulls and Bears.

The purpose of brokers is to facilitate the trade of the traders. After you open a trading account, the broker gives you the right to execute trade/ transactions, which includes certain rights and privileges, including the right to be a bull or a bear. The terms bulls and bears are nothing but used to describe the sentiment and behavior of market participants. Traders use these terms to identify the direction someone was trading in the market.

The term bull was derived from the way in which bulls attack or charge, moving upward. On the other hand, bears move downward when they attack the charge. Therefore bulls or bullish denotes a buying market, because they believe prices will continue to move upward or rise whereas bears or bearish denotes a selling market because they believe prices are going move downward or fall.

Bullish investors are optimistic and have a positive outlook on the market. They anticipate upward price movements and may open long positions (Buy positions) to profit from potential gains. Bearish investors have a pessimistic view of the market and anticipate downward price movements. They may open short positions (sell positions) or take other actions that can benefit from falling prices.

Now understand why we are telling about bulls and bears because every trader has to make a decision to be either a bull or bear before executing the trade. To make a profit in the market, you must always buy low and sell high. Both bulls and bears are trying to do that.

I hope this article is helpful for you to understand the  Market participants: Bulls and Bears.

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