Bulls vs Bears Clash: Who is Bull and Bear and Why the Battle is so Important in Share Market.

Bulls vs Bears concept is solely originated from Share Market. Although the theory of it can be complicated to discuss but more than that it's a great and fascinating story to tell. We all have seen photos of a Green Bull attacking a Red Bear in many Share Market ad or promotion. In reality that image doesn't represents animals, it refers People or good to say Group of Investors.

 But Are you puzzled that whether or not you should invest in Share Market?

FROM WHERE THE STORY OF BULL VS BEAR CAME ?

Just like every rumor has a source, every story originate from some place. This time, Virginia City, an old silver mine town in Naveda become hub. For entertainment purposes, they used a bull and bear to fight with each other. Bulls slashed it's opponent with fierce horns from bottom to up, while Bears used their giant paws to strike down the opposition from sky to earth with mighty strength. 

That leaves the curiosity of Who will Win ? And ans of this question determine the condition of the market and it's movement. But to know that we first have to know who's winning does what to market and mindset of investors.

WHO IS BULL AND WHAT WILL HAPPEN IF IT WINS THE CONTEST ?

As the story suggesting, Bulls are group of investors who forced the market to go up despite global financial condition same as bulls slashed with horns. Generally coloured in Green to show the positiveness and healthy growth of economy, bulls are always wanted by generals.

There are few individuals in world who can make the market moves as per wish. Sounds fascinating right? Cause it is. Renowned investors like Warren Buffett, Benjamin Franklin, Rakesh Jhunjhunwala are often called "Big Bulls" as their single investment in particular stock can break the equilibrium of the market. Those people not only have the capital to do but also their fame can influence the others to follow them.

So, answer of the second part, What will happen if Bulls win the clash? Winning of Bulls ignites great retrun assurance. Companies' stocks make progress which means they'll manufacture more products of demand. And this whole thing will attract new investors in the field. Overall a win-win situation to all.

WHO IS BEAR AND WHAT WILL HAPPEN IF IT WINS THE CONTEST ?

In respect of Bulls, a group of people who want to market stay low and forced it to go down to get benefit from that, they are known as Bear team. Generally marked as Red to indicate the dangers that are coming and refers to bad finantial condition of market.

Ironically, Bears or Bulls are not different entity, sometimes investors can be both bull and bear depending on their approach to the market. When any company withdraw their Smart Money or Influential individual took their money out of some stock, generals follow their direction which caused a steep fall in price. So, Bulls or Bears can be same person depending on his stand to the market.

It left the query that what will happen if bears take control of the market? Bears in control is never a good sign for market, also it further demotivate new investors to enter the market. A bear market can caused by many reasons whether it's some law implementation or emergency situation like pandemics or war, even sometimes bad performance of a company can create a ground for the entry of Bear. Also, a Bear season can last very long campare to Bull.

IS BEAR MARKET ONLY BRING ILL-OMEN?

Then, the only concern left is now, Why a group of investors want Bears Market? It is crystal clear that Bear is the Villain or Destroyer and Bull is the Hero or Savior of the market. Then the reason experienced investors want Bears to enter the market, despite its dangers, is quite simple to bring the balance. 

Starting with a simple example, Suppose market is in Bull's control and stocks of various companies makings new Highs everyday. In that period stock of a Bank is 100 USD. But it is getting high day by day and you don't have that much money to invest but want to invest there at any cost as you believe the stock will give you huge return in long term. But you can't enter while bull is in charge. 

So solution? Wait for Bear. Bears are the one who will bring down the stock in range of 60 to 70 USD. Now it is your time to enter as the stock price is in your limit and you are ready to get great returns. Therefore, is entrance of Bear that Bad if the condition favours you? Exactly, experience investors know the value of Bear. Even though Bear hated by most, big and experience investors always welcomed them and planned strategy according to them.

In the end, Investors can book profit in both Bull and Bear Market with Delivary or Holding as well as Intraday strategy depending on their stance to market.