Bullish and Bearish are two of the most commonly used terms in the financial industry. They are used quite often and yet most people don't know the true meaning of these terms. In this blog post I am going to explain what they mean and how we can use them.
Bearish
The market is said to be Bearish when there is a
general expectation of a fall in prices in the future. In such a market every
Bear tries to sell at present in the hope to make a profit as a result of a
fall in prices in the future. Owing to this sentiment the price level falls
down in the market.
Bullish
The market is called Bullish when there is general expectation of a rise in prices in the future. The Bull operators start buying in the hope to make a profit in the future when the price rises up. In other words, a market is said to have a Bullish tendency when the number of investors who are willing to buy shares, is greater than those who are prepared to sell them. As a result of this trend, the price level rises up.