Bulls and Bears Bulls and bears constantly fight for market superiority. Most people prefer to play the upside of a stock rather than the downside. That strategy may work well in rising bull markets but can get hit hard when the markets reverse.
The advantages of being a bull in the market 1. The market goes up much more then it goes down. Buying strong stocks can help you succeed in that environment. 2. Bullish investors do not have to sell. If you have a stock that you are bullish on you can buy it and hold onto it forever. This is different from shorting, where at some point you have to buy the stock back and return it. 3. The majority of traders and investors are bullish. If the majority of the people are playing the upside it is more likely that over the longer term the market should go up on average. 4. Warren Buffets has made Billions of dollars by being a long term bull in the stock market. If you have plenty of time to let your money grow it could be a good thing to become a long term bull. The advantages of being a bear in the market 1. Stocks will often go down faster then they go up. After all people panic in a falling market. This means it’s possible to make faster and bigger returns by playing the downside of the market. 2. Playing the downside can be a great way to make money when there is a bears market. This could be a good alternative to watching your bullish positions lose value. Remember bear markets will make millionaires too. 3. Jessie Livermore who was considered the best trader of all times was considered a bear. He made fortunes when the markets were heading down and would be a billionaire by today’s standards.
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