Do you know what the most dangerous animal that preys on so many traders on the FX market? The raging BULL and his friend grizzly BEAR. If you are ever going to be reckless on the market hizi wanyama will severely not only hurt you but bleed you dry - literally on your trading account.
The market is structured in a way that these "species" coexist and on performance describes how we trade.
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| Your account is at risk! |
The Bull
What's a bull called in Swahili? Let me know in the comments. So a bull is the positive effect on the direction (rising) of a currency. This is when buyers have entered the market with optimistic expectation that will yield them profits since favorable factors are affecting the economy kama trade agreements, low unemployment et cetera yani good stuff.
The Bear
As a trend tends to have more sellers entering the market, a negative effect tends to affect the direction (falling) of the currency. A bearish market tends to create chances of profit as well loses that could derive from the economy, like a global pandemic or a US election or that moment I woke up and found that oil prices were falling and I had placed a buy order on a bearish trend. It will happen to anyone. No one knows the future.
But there is a way to be safe and handle the bull and bear with care and caution in my next blog update.
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