Types of Dealers in the Stock Exchange Market

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If there is one way to make money, it's stocks and bonds. There are people who invest their hard earned money in various securities. Every day, thousands and millions of titles are sold and bought around the world.

So who is a speculator or a stock investor? Well, a speculator buys and sells different types of securities with the ultimate goal of making a quick capital gain due to price fluctuations in the stock market. On the other hand, an investor purchases the securities with the ultimate goal of generating regular income from holding the securities. Its ultimate goal is associated with an investment in safety.

Investors typically hold stocks and bonds for a long time. They earn dividends and interest as a reward.

Four types of speculators

1.) Taurus

A bull is a speculator who anticipates a rise in prices. She buys securities at the current price with the aim of reselling them at a future date when prices go up. She buys for a long time and puts pressure on prices to increase. If her speculations go wrong, she spreads rumors that prices will go up (she does bullish campaigns also known as market rigging.) A stock market dominated by bullish speculators is referred to as a bull market.

2.) Bear

A bearish speculator expects prices to fall. She enters into a contract to sell securities at the current price with the aim of buying them at a later date when their prices fall. She is a pessimist. If the prices fall according to her speculations, she buys them back.

This is called short selling. Unlike a bull speculator who keeps his head up, a bear speculator keeps his head down. She's working to drive prices down in the stock market through selling pressure known as a bearish raid. When his speculations go wrong, bear pressure arises. If bearish speculators dominate the market then it is termed bearish.

3.) Lame duck

A lame duck is a desperate bear speculator. She is desperate because she had entered into an agreement to sell securities to a buyer and the shares are not available on the stock exchange. The buyer is unwilling to postpone the transaction.

4.) A milkman

A slag speculator applies for the securities with the aim of having the prices of the shares listed at a high price in the stock market. She eventually sells the securities when prices rise. It creates bogus requests by sending a number of applications under different names. A slag speculator is a high-end hunter.


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