The Indian stock market is going for a swing. Now-a-days whether it goes up or comes down, the % change is above 2%. Gone are the days where the change in the sensex would be less than 50 points. Its now in the multiples of 100s. After the continuous downward journey for the 4 days, today markets recorded a 5% change in the upward movement. As they claim, its a historic day for Sensex, as its has never been bullish before. Did I hear bullish? What does that mean?
“Oh! Yeah”, you say. “When the stock prices are going up and market is looking good its called bullish. On the contrary, when the prices are going down and market is called as bearish”. Good. But do you know why its called so? Though everyone know about the terms, no one is sure about when they came into use nor the reason behind it. There are two widely accepted reasons.
First one is associated with the way these animals strike. Bulls strike with their horns in an upward movement while bears strike with their hands in an downward movements. So upward market is bullish and downward market is bearish. The investors during upward movement are called bulls and those who invest in a downward movement are called bears.
Second and relatively less accepted reason is associated with their movements. While bears move with caution, bulls are bold and strike right away.
Good to know the reasons? Do you know whether to be a bull or bear in the market? It doesn’t matter. Because, there is an old saying: “Bulls make money, bears make money, but pigs get slaughtered”. Yes, I know that the investors who look for larger profit in a shorter timer and eventually end up with lose are called pigs. But can someone explain why?