How to make money investing in pifs. Bulls Make Money, Bears Make Money, Pigs Get Slaughtered | The Motley Fool
By Stephan A.
Jim Cramer's Rule 1: Bulls Make Money, Bears Make Money, Pigs Get Slaughtered
Abraham Updated Jun 25, Many people are intimidated by the business news because they don't understand the vernacular. What does this have to do with money?
But there's good news: Wall Street language isn't only for business elites with advanced degrees from Ivy League schools. In fact, you may be surprised to find out that most Wall Street lingo is neither sophisticated nor esoteric.
Yes, the truth is that investment bankers and brokers typically use words you probably mastered in kindergarten.
Let's take a look at these barnyard words from a financier's perspective - you'll be fluent in no time. A Dog With Fleas Depending on your movie knowledge, you may remember this classic line in the movie "Wall Street": "It's a dog with fleas, kid. A dog is an underperforming stock or asset. Most Wall Street investors think of "dog" as a four-letter word, but a few are attracted to the dogs of the market. Bear The term bear refers to the given market conditions.
There’s always a bull market: Jim Cramer’s 25 lessons to grow money, and not lose it
Bull and bear are probably the most familiar terms on Main Street. Bear markets are rife with pessimism and negative sentiment.
Probably the most famous bear markets occurred inwhich some believe caused the Great Depression. Unfortunately, economic indicators in have drawn comparisons to the Great Depression of The severe housing and credit bubbles originating in the first decade of the new millennium in the United States burst abruptly inand this credit unwinding, or "deleveraging" had a negative ripple effect on economies and markets worldwide.
Venerable institutions, such as Bear Sterns and Lehman Brothers were wiped out by this bear market.
Share Article via Email Key Points "Mad Money" host Jim Cramer shared the two most important investing rules he has learned after nearly 40 years in the business. Rule No. Investing rules aren't easy to spot.
Stock markets across the globe also experienced severe downturns. Governments engineered financial rescue packages for many large banks and insurance giants to avoid global financial markets meltdowns. For more insight, see Where did the bull and bear market get their names? While there is no clear-cut strategy for investors in terms of surviving a bear market, many financial advisors suggest that bear markets occur as part of the normal economic and business cycle. For longer-term investors, these bear markets could be viewed as buying opportunities.
Other advisors may recommend selling stocks and raising cash until a clear direction or bottom of the market begins to appear.
Bull The term bull refers to a very positive stock market environment in which stock prices are increasing and money is flowing into stocks. Investor confidence is high in bull markets.
During the s and through earlyhow to make money investing in pifs U. Bull markets can be very powerful creators of wealth for the average investor as well as Wall Street gurus.
Ostrich An ostrich is an investor who fails to react to critical situations or events that are likely to impact his or her investment.
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For example, if the Securities and Exchange Commission SEC is launching an investigation into a company, an action that could be detrimental to the company's stock price, the ostrich will simply ignore this news.
The ostrich effect is one in which investors bury their heads in the sand, hoping for better days ahead. Ostriches appear or disappear most frequently during bear markets, when people tend to experience the most financial stress.
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Pig A pig is any investor who puts greed ahead of his or her investment principles or sound strategies. Anyone who watches investment guru Jim Cramer knows one of his most famous expressions: "Bulls make money, bears make money and pigs get slaughtered.
As a result, the pig may then go and borrow money on margin or mortgage his or her home to buy more of a stock at a higher price with the hope of making more money on the investment. The pig can get slaughtered if the stock drops and all the original gains are lost.
Smart investors are disciplined investors.
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Professional investors know when to take profits as well as when to cut their losses. Their primary concern is the preservation of capital and not necessarily hitting a home run every time they step up to the plate.
Cramer's top 2 investing rules for bulls, bears and everyone in between
Sheep A sheep is an investor who has no strategy or focus in mind. This type of person simply listens to others for financial advice, and often misses out on the most meaningful moves in the market as a result.
- Stay clear of these investing habits early and chances are, you will be more successful in growing your money
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For example, sheep investors who had a philosophy of only buying value stocks in the s missed one of the greatest bull markets of our time. In other words, a sheep how to make money investing in pifs be eaten by a bull or bear if he or she isn't in the right place in the market. Conclusion Don't assume that you can't learn trader-talk or Wall-Street-speak just because you don't work there.
In fact, picking up the lingo may be more of an exercise of your animal knowledge instead of your investment savvy.
Learning these terms can help you gain some insight into the world of words on Wall Street.
Surprisingly, you'll binary options course from valery andryashin reviews that they aren't different much from the words heard on Main Street - or in kindergarten classrooms across America.