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Types of dealers on the stock market

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

So who is a speculator or an investor in the stock market? Well, a speculator buys and sells different types of securities for the ultimate purpose of making a quick capital gain as a result of price fluctuations in the stock market. On the other hand, an investor buys securities for the ultimate purpose of generating regular income from holding the securities. Its ultimate goal is coupled with safe investments.

Investors usually hold shares and bonds for a long period of time. Earn dividends and interest as a reward.

Four types of speculators

1.) Bull

A bull is a speculator who anticipates a rise in prices. It buys securities at the current price, in order to sell them at a future date when prices rise. Buy a lot and put pressure on prices so that they rise. If her speculation goes wrong, she spreads rumors that prices will go up (bullfighting campaigns, also called market tricks.) A stock market dominated by bull speculators is called a stock market.

2.) Bear

A bear speculator anticipates a drop in prices. It concludes a contract to sell the securities at the current price, in order to buy them at a future date when their prices fall. She is pessimistic. If 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. It is working to reduce stock market prices through sales pressure called bear raid. When her speculations go wrong, a bear squeeze appears. If bear speculators dominate the market, then it is called a bear.

3.) Lame Duck

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

4.) A slag

A slag speculator applies to securities in order for stock prices to be listed at a premium price on the stock market. Finally, it sells securities when prices rise. It creates fake requests by sending a number of applications under different names. A slag speculator is a premium hunter.

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