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Sunday, November 4, 2007

---- Bulls Vs. Bears ----

Who is called a Bull?

Bull is a person who buys shares in the expectation that prices will rise and so giving him an opportunity to sell/resell at profit.

Who is called a Bear?

Bear is a person who expects prices to fall and sells shares hoping to make a profit by subsequently repurchasing at a lower price.

How would you know that a market is bullish or bearish?

Advance-Decline ratio is a useful tool for detecting bullish or bearish trend in the stock market. To get this ratio one divides the number of traded shares which have risen in price by those which have fallen. For example, if 200 shares have advanced and 100 declined on a particular day the A-D ratio is 2. Numbers more than 1 indicate a bullish trend and less than 1 a bearish trend.

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