Buying Stocks - The Bulls and The Bears

If you have been thinking about buying stocks,people who have no knowledge of the market
chances are that you have spent some time readingbuying stocks toward the end of a bull market -
up on the market and perhaps watching any one ofwhich leads many of them to lose their investment
the many market-oriented programs on cable TVwhen the market suddenly turns south.
these days. You have probably heard the words bullsAs you might have guessed, that's when the bears
and bears used in relation to the market at differentcome stomping in. Bear markets are seen when the
times, and may have even wondered what theyeconomy slows, unemployment begins to rise, and
mean, and how those terms might impact yourstock prices fall. Buying stocks in the midst of a bear
success as an investor.market is more complicated than during the boom
The terms bulls and bears are used by investors,times, but many savvy investors still manage to
brokers, and outside analysts and observers in anmake money during these times through short selling.
attempt to capture in a word the general ambianceOthers merely swallow any losses suffered at the
and mood of the market over any given period ofend of the bull market and wait out the bear market,
time. Whether you are merely follow the stockonly buying stocks again when it appears that the
market on the news, or are buying stocks as part ofbulls are prepared to resume their run.
your investment strategy, you will hear these wordsRecognizing the start and end of these two market
used on a frequent basis.types before they occur is one of the secrets used
The word "bull" refers to a so-called bull market.by some of the most successful investors - who
During a bull market, the economic activity of thealways seem to be buying stocks and selling them at
country is brisk, job growth is high, and the marketsthe most opportune times. For the rest of us,
rush forward like a charging bull. It is easy to chooselearning to chart a sensible investing path through the
winning stocks during a bull market, as most stocksbulls and bears usually has to suffice.
rise at least somewhat. You will often find many