Regardless of the position a trader is opening, he/she has an assumption regarding the movement of a stock's price: up, down, or constant. When a trader assumes that a stock will go up or down, there are technical terms that can be used to describe this assumption.
Bullish: Bullish traders assume the stock's price will rise. Preliminary examples of trades with bullish assumptions include:
Bearish: Bearish traders assume the stock's price will fall. Preliminary examples of trades with bearish assumptions include:
Photo Credit: Google Images
Ninteen year-old trader, future connoisseur of options.
Follow me on Twitter!