We are not talking about animals and we are definitely not in a zoo. We are talking about terms which are used very commonly in the trading world. Long, short, bullish, bearish areterms used frequently and if you are new to this world, they may confuse you a bit. Let’s see, what these terms mean.
Long: the term long means ‘to buy’. So if you are going long in a stock, it means, you are buying that stock. If you already own the stock, then you are already long. In trading, it also means that if you buy or go long, then you expect the value to increase. You can sell the stock at a higher price than what you paid for it and make some money.
Short: most people assume that trading involves buying something at a lower price and selling it at a higher price. There is an option, where you sell first and buy later. This is called shorting. It is a bit strange and people don’t understand this concept very easily. In financial markets, it is possible to buy first and sell later and sell first and buy later as well. There are certain restrictions for shorting a stock, like which stocks can be shorted and when.
Bullish: being long means to buy and the belief that the prices will go up and remain high is conveyed by the term bullish. If you say the market is bullish, it denotes a positive outlook. Being bullish can express both, feeling and action. The term bullish comes from the bull, which always strikes upwards with its horns. A bull market is when the asset’s price is rising.
Bearish: this is the opposite of bullish. If the market is bearish then it means that the price of an asset will fall. A trader may sell the shares they currently own or hold on to them and ride out the bearish phase. Another option during the bearish run is to go short. The term bearish comes from the bear, who always strikes downward with both his paws.
As, it is a lot find the trading world to be very complex and generally avoid it. What they don’t realize is that there is a lot of money to be made here and it is a great opportunity for people who can do some research and have patience and smartness. Use QProfitsystem,which can make your trading seem very easy and will help you master it within no time. Find here about QProfit System. Go ahead and enjoy trading.