The stock market is new trend phenomenon. It may adopt 3 routes or trends. It is either bearish or bullish or range bound. A bull market is one in which stock prices are increasing, while a bear market is one which stock prices are decreasing. More specifically, a bear market is when the stock prices decrease for a prolonged time period, generally by 20% or more, while, a bull market is when the stock prices increase for a long time period, generally by 20% or more. The terms bull and bear can explain investors too. Investors, who are positive about the future of market, are referred bullish bulls, “investors”. A range bound market has no definite downward or upward trend and tends to move within a relatively strong range for a certain period of time.
There are commonly 4 kinds of investors in a stock market; we can classify them as, sheep, hog, bear and bull. A bull investor is one who is optimistic about the future market. A bull investor anticipates an increasing market and amazingly buys the security in the hope of selling it later at a top price. A bear investor is one who is pessimistic about the future of stock market. A bear investor anticipates a drop market and sensitively sells the security in the hope of buying it back at an affordable price. Bears/bulls earn money on their perfect moves. A hog investor just thinks about fast returns, whimsically and blindly. A sheep investor behaves inelegantly on account of panic or fear demonstrates deficiency of initiative. Sheep/hogs are frequent losers of their money in a market. It is amazing to note that a bear or bull may become victim of sheep/hog tendencies due to chaos or crash in the market.
Hogs are explained as greedy individuals. They are not capable to know market sentiments, fundamentals and technicals. They are tempted to buy shares which they cannot afford because of their greed to earn fast money. So if there is volatility in the price which occurs very often, they get panic and make negative decisions. That is why they drop in the end. But if their best is correct, the shares they buy do better. They will present excessive tendency to wait till the price go high possible height and they often close up failing down the cliff. They decide their investment moves, rationally, in the starting, but greed wins over reason and blurs their plans and decisions. In the end, they down into trap designed by little market gurus.
Sheep are explained as undisciplined/fearful individuals, so that, they are blind followers of winner investors without knowing the true basic of their victory. They do not have plan power. They just follow the investment tips. But one thing is sure; beside tips strategies is also important in trading. We have seen many times with same tips some people makes loss while other makes profit. Its hard to believe but this is a fact. So, the only tips-driven sheepish investors are slaughtered as well. At McxNiftyTips.com beside tips we also provide effective trading strategies and training material which is used by many successful traders.