The investors in any share market categorized according to four animals by considering their behaviors. The four Share Market Animal are Bull, Bear, Chicken and Pig. Pig is the invaluable animal who you do not want to be an investor. First we will consider about the behaviors of the animals which mentioned.
The Bull : Best Share Market Animal
Bull is the happiest animal who live in Share market. I’m sure you may have heard the Bullish Trend in Share market which shows the economic development of the market and this led upturned price of entire shares gradually. So those who buy shares on these bullish trend, the investor get capital gain as well as dividend easily. Most of people earn lot and lot of money on this bullish upturned market but unfortunately this will not long last ever.
The Bear : Worst Share Market Animal
Bear is not an active animal like Bull and its a lazy animal. Bear shows the Bearish trend of the market which downturned of the pricing. Normally its really hard to earn money from stock market on this bearish downturned market. The one of the good strategy on this market trend is sell the shares by having even small loss and stay clam and re-enter the market where the price of the stock is extremely down or undervalue. The bearish market impact negatively on country and share market economic. Most of successful investors temporarily leaves share market on these Bearish trend.
The Chicken
Normally chicken is very fearful animal. The investors who do not like to take risk due to fear of loosing their money falls in to category of chicken. They refuse to take risk and always avoid for enter in to share market. They prefer to do trade on more secure investment which provide less return like fixed deposits, government bills and bonds. When economy get downturned they cash back their deposit.
The Pig
The pig represents silly investors who take unnecessary risk on investments. Most of these types of investors dive on rumors and they do not analyze on the company financials or stability before they invest. Some of the investors lose their entire portfolio due by following rumors and trying to earn extra-large profit on short time. There is an old saying in share market which Bulls make money, bears make money, pigs just get slaughtered!”
“The content of this article is taken by Sinhala guidetocse website and the total credit of this article must for author madhawa Habarakada.”