Why Animals Like Bull & Bear Are Used As A Symbol In The Stock Market

Bullish, bearish, or bulls and bear words are probably the highest used terminologies in any stock exchange in the world. This is because anytime a stock moves upside with a good momentum, traders term it as a "bullish" move. Whereas whenever a financial instrument comes down, it is said to be a bearish move.

Now, no one knows how exactly these terminologies were started in the first place because there is nothing documented related to this. But even though there is nothing concrete about the start, traders and investors have spread many stories regarding the same. Today we will discuss one of the tales that have been followed by many traders for decades. But in the end, it doesn't have any solid evidence. Since whichever story you want to believe in, will 100% not have solid evidence behind it. So without wasting any more space, let's start.

The one which follows their weapon

Most of us have seen a bullfight or a bear fight video in our life before. So, if you remember the video, you can agree with the fact that whenever a bull wants to attack, it generally moves its head down with its horns pointed upwards. And thrust its head up onto the body of the animal it is attacking. This particular move quite explains why up moves are termed bullish moves. Whenever a stock jumps from a support zone or trendline, it bounces up aggressively, which signifies the aggression of a bull. And the movement of the price upwards follows the up move of the head of the bull.

And similarly, whenever a bear wants to attack an animal, first of all, it raises its body and paws. After that, it aims and thrashes the paws onto the body of the prey. This move consists of the sheer enormous power of the bear along with the sharp nail which pierces inside the body of the enemy, injuring it on the spot and possibly dead. Now, it's quite clear why down moves are referred to as bearish moves. Whenever prices get rejected from resistances or trendlines, they get aggressively sold. And what follows is the aggressive downside move which signifies the paws of a bear during an attack.

Now, however illogical or absurd or quite fascinating this story seems to you. This is probably the most used and believed reason as to why we use bulls and bear terms in the stock market. Another fact that supports this story is that long ago, before any stock exchanges were formed in the USA, where the current wall street exists. The forests were full of wild bears and bulls predominantly. Hence, the ones who once populated the lands were given a symbol of token in a modern stock exchange which humans made after developing the land.