New Terms
Bull: An investor who thinks the market, a specifi c security or an industry will rise.

Bear: An investor who believes that a particular security or market is headed downward
is indicative of a bearish trend. Bears attempt to profi t from a decline in prices. Bears are
generally pessimistic about the state of a given market.

Bull market: A financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. It’s difficult to predict consistently when the trends in the market will change. Part of the difficulty is that psychological effects and speculation may sometimes play a large role in the markets

The use of “bull” and “bear” to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it’s a bull market. If
the trend is down, it’s a bear market.

Bear Market

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market, selling continues, which then creates further pessimism. This is not to be confused with a correction which is a short-term trend that has duration shorter than two months. While corrections are often a great place for a value investor to find an entry point, bear markets rarely provide great entry points as timing the bottom is very difficult to do. Fighting back can be extremely dangerous because it is quite difficult for
an investor to make stellar gains during a bear market unless he or she is a short seller.

Fundamental Analysis:

A method of evaluating securities by analyzing statistics generated by market activity such as past prices and volume is defi ned as ‘Fundamental Analysis’. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Morning star: A bullish candlestick pattern that consists of three candles that have demonstrated the following characteristics:

• The fi rst bar is a large black candlestick located within a defi ned downtrend.
• The second bar is a small-bodied candle (either black or white) that closes below the first black bar.
• The last bar is a large white candle that opens above the middle candle and closes near the center of the first bar’s body.

This pattern is used by traders as an early indication that the downtrend is about to reverse.

Technical Analysis:

This is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity