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Today's Quote
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
~Warren Buffett
Stock Basics - Table of Contents
Stocks Basics: What Are Stocks?
Stocks Basics: Different Types Of Stocks
Stocks Basics: How Stocks Trade
Stocks Basics: Where to buy stocks?
Stocks Basics: How to Read A Stock Quote
Stocks Basics: The Bulls and The Bears
The Bulls and Bears in the Stock Market
On the Streets, the bulls and bears are in a constant struggle.
The Bulls
A bull market is when everything in the economy is great, people are finding jobs,
gross domestic product (GDP) is growing, and stocks are rising.
Picking stocks during a bull market is easier because everything is going up. Bull markets
cannot last forever though, and sometimes they can lead to dangerous situations if stocks
become overvalued. If a person is optimistic and believes that stocks will go up, he or she is
called a "bull" and is said to have a "bullish outlook".
The Bears
A bear market is when the economy is bad, recession is looming and stock prices are falling.
Bear markets make it tough for investors to pick profitable stocks. One solution to this is to
make money when stocks are falling using a technique called short selling. Another strategy is
to wait on the sidelines until you feel that the bear market is nearing its end, only starting
to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are
going to drop, he or she is called a "bear" and said to have a "bearish outlook".