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Module 1 – Lesson 14 – The Financial game between bulls and bears

1. game players with clear objectives

The bulls and bears
When it comes to the wildlife of Wall Street, two animals should immediately come to mind: bulls and bears.
With the bear standing in for a downward-trending market and the bull in for an upward-trending one, these
two have stood in opposition to one another since the 18th century.

The Oxford English Dictionary
bear (OED) frames this financial use of
bear as preceding that of bull,
The Oxford English Dictionary (OED) frames this suggesting that this use of “bear”
financial use of bear as preceding that of bull, probably extends from the idiom
suggesting that this use of “bear” probably extends “to sell the bear’s skin before one
has caught the bear.” These
from the idiom “to sell the bear’s skin before one bearskin traders (or jobbers, as

has caught the bear.” they were known) often sold their
wares before receiving them and
would hope for a downturn in the
market so that they might make a
larger profit on the transaction. On the other end of the market, the emergence of the bull – a businessperson
in favour of an upward-trending market – in opposition to the bear is unclear. Some suggest that the term
was drawn from the practice of bull- and bear-baiting, or even from the fighting styles of the two animals (a
bear swipes down with its paws where a bull thrusts upwards with its horns).

So, while bear and bull originally referred to the actual speculators, bear market and bull market came to
refer to the market conditions favourable to those investors, though they did not appear until the late 19th
century. Other derivatives include bear raid – when investors try to profit on the falling price of a stock or
cause the fall to happen – and bear squeeze – the financial pressure experienced by bear speculators when
the market rises.

2. game object
If trading is a Game and your objective is to capture pips by scoring points, what happens financially when
you score a Point?

Bulls
Bulls are trying to score points against the Bears. Bulls score points when the market makes new highs or
higher highs. Be a BULL and BUY FIRST – enter buy first and then exit selling second. The market movement
is “up” Your position is “long” or “bullish”

Bears
Bears are trying to score points against the Bulls. Bears score points when the market makes new lows or
lower lows. Be a BEAR and SELL FIRST – enter selling first and then exit buying second. The market movement
is “down” or dipping. Your position is “short” or “bearish”

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