Why do buyers in the market call themselves “bulls” and sellers “bears”?
Let’s imagine how two large animals fight in nature, because that’s where this idea comes from:
The “bull”:
• When a bull attacks, it uses its horns to strike from the bottom up. This represents the upward movement in the market.
• Buyers are called “bulls” because they believe the price will rise and try to “push” the market upward with their purchases.
The “bear”:
• When a bear attacks, it uses its claws to strike from the top down, representing the downward movement in the market.
• Sellers are called “bears” because they believe the price will fall and try to “pull” the market downward with their sales.
How does this work in the market?
1. Bulls enter buying when they believe the price will rise, trying to push the market upward.
2. Bears enter selling when they believe the price will fall, pulling the market downward.
What happens when they “fight”?
• When bulls and bears are in balance, the market is stable.
• But when one side is stronger, it “wins”:
• If the bulls are stronger, the price goes up (bull market).
• If the bears are stronger, the price goes down (bear market).
Where did this come from?
This comparison is old and comes from the financial markets of the 18th century, when traders used these two animals as symbols to represent upward (bulls) and downward (bears) strength.
So, whenever you hear about bulls and bears in the market, remember how these two animals attack – one from the bottom up (bullish) and the other from the top down (bearish). It’s like watching a battle in the jungle, only on a market chart! Follow✅️