Trader slang for newbies

 I'll just tell you what the words mean, well, sooo often found in the comments of the channels about investments. Slang is still a trading, not an investment one, nevertheless why not tell



Bulls are market participants who are trying to capitalize on the increase in the value of stocks (or other assets).


Bears - in contrast to bulls, these are market participants "playing short", or trying to capitalize on the decline in stock prices (or other assets). For example, they borrow stocks from a broker that they expect will soon fall. They immediately sell them at a high price, and after the decline, they buy them back at a low price and return them to the broker.


A vivid analogy, how to remember: the bull raises the opponent on the horns up ⬆, and the bear presses the victim with his paw down to the ground ⬇.


Without going far from bulls and bears, it is necessary to reveal the no less frequently used words "short" and "long". I must say right away that in reality the period has no primary meaning and the long can be shorter than the short. Just forget about the translation of words, in fact, everything is very simple.


⬆ Long is the so-called long position. This is simply a designation for a tactic in which the trader wins when the value of the purchased asset rises. For example, I bought a stock in the hope of an increase in value, which means I opened a long position (or long). It's easy to guess that this is exactly what the bull is doing (and no additional meaning).


⬇ Short - or short or short - that's exactly what the bear does (short). Borrowed the asset = "opened a short position", sold it at a high price, the asset fell in price, bought it back cheaply, returned the asset to the one from whom it took = "closed the short position". Full compliance.


When the market goes up, it is customary to say that bullish sentiments prevail in the market, when downward - bearish. It should also be noted that a bull or a bear is not a constant characteristic of a particular trader, but rather his role in a particular transaction or at a certain period of time.


... and other beasts


The zoo is not over here yet:


Sheep are the most cautious market participants who decide to buy or sell later than anyone else.


Hares are those who are trying to make money on small changes in the exchange rate, that is, constantly jumping from one asset to another.


Pigs - these are considered to be greedy traders trying to hold a profitable position until the very last moment (to get the maximum profit), which threatens to lose when the trend has time to change early. In this case, they say that pigs go under the knife☹


Hamsters are novice investors who, without any strategy, without delving into the essence, follow all sorts of advice from bloggers-traders, "exclusive signals", etc. As a result, they usually buy “on the highs” (when the price has reached a peak and is about to turn around), and then, in a panic, sell the asset at a loss “on the lows”. In short, on emotions they choose the most unfortunate moments for transactions and very quickly drain their capital. And especially gifted hamsters also use leverage. 


That's it. I wish everyone not to be hamsters, but to invest thoughtfully and for a long time 😉

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