Understanding Bulls and Bull Markets
A bull, or being “bullish,” can refer to two related concepts:
- Bull Traders and Investors: Bulls are called traders or investors who employ a strategy based on the expectation that an asset’s price will increase. The term “bull” is likely derived from the upward motion of a bull’s attack with its horns. Bulls are optimistic individuals who believe in the long-term potential for their chosen asset(s) or the overall market conditions to drive a steady price increase. They adopt a “go long” approach, buying low-price assets and patiently waiting for their value to be appreciated before selling them. Bulls stand in contrast to bears, who employ the strategy of “shorting” an asset, anticipating its price to decline.
- Bull Markets: The term “bull market” describes a market where assets experience a consistent and sustained upward price trend over the long term. At the same time, day-to-day fluctuations can occur due to the activities of day traders; a bullish market is characterized by most assets exhibiting an aggregate upward trend over an extended period.