Effective stock trading-a glimpse at investors ' mood
The stock market is a trend-driven phenomenon. It may adopt three trends or route. Either bullish or bearish or bound to the range. Passionate market is one in which stock prices are raising, while the market lethargy is one in which stock prices are falling. More specifically, the market lethargy is when the stock price is down for an extended period of time, usually twenty percent or more, in the meantime, the market is skittish when share prices grow for an extended period of time, usually by twenty percent or more. The term can describe the bull and bear investor, too. Investors, who are positive about the future of the market, referred to as bullish investors, or "Bull", and investors who are negative about the future of the stock market is bearish investors are called, or "bear." The market range-bound with no trend up or down and are likely to move in a relatively tight range for a certain period.
There are generally four types of investors in the stock market; We can classify them as, Bull, bear, pig and sheep. Bull Investors are people who are optimistic about the future of the market. Investors anticipating the market's Bull ride and neat buy security in hopes of selling it later at a higher price. An investor bears are people who are pessimistic about the future of the stock market. Investors anticipating the market bears down and selling security unwise in the hope of buying it back at a lower price. Bulls make money bears on the right to move them. Investors pigs just thinking about a quick return, blindly and whimsically. Investors are sheep who behave awkwardly because of fear or panic and shows a lack of initiative. Pork/lamb is often the loser of their money in the market. It is interesting to note that the bull or bear may become a victim of pig sheep tendency due to accident or chaos in the market.
Pigs are portrayed as greedy people. They are not capable of understanding the market sentiment, technicals and fundamentals. They are tempted to buy stocks that they can't afford because their greed to make money fast. So if there are price volatility that occurs very often, they get panicked and made a bad decision. That's why they lost in the end. But if they bet right, they buy stocks do better. They will show an excessive tendency to wait until the price goes the maximum possible height and they often end up falling down a cliff. They plan to move their investments, rational, at first, but greed prevails over reason and clouding decisions and their plans. In the end, they fell into the trap that is designed by teachers smart market.
The sheep are depicted as individuals fear/discipline, thus, they are blind followers of the successful investor without knowing the real foundation of their success. They have no power of decision. They just follow the tips of the investment. But one thing is certain; the stock market is a very competitive field. People do not give an effective investment tips. Real tips were not disclosed, and they stated is bad tips. So, investors give Liverpool tip-driven slain as well. They always get the trend too late and when smart investors to make them out. So they slide down the journey alone.
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