Friday, May 18, 2007

What looks easy may not be easy

In the stock market we have bulls, bears, stags, chickens and pigs.

Bulls are those who buy in anticipation of a rise in the market.

Bears are those who sell in anticipation that the market will drop.

Stags are those who will only apply for new issues in the hope of making a profit.

Chickens are very scared to enter the market. They keep their money in the banks, in bonds or in treasury bills. When chickens turn bulls, the market will be at a very late stage of a bull market. At this stage, the market will be most tempting and the most dangerous.

Pigs are lazy; they will not do any research; their ideology is to wait for a good tip to make them rich. They forget that in this world, you can’t get something for nothing.
The market has a way of fattening the pigs, and then sending them to the slaughter house.

Lately, monkeys have also come in.
There was once a monkey who saw some fish swimming about in a river. As it was watching, a flock of wild ducks also came to swim and play happily in the water. The day was hot. The lure of the cool water was too tempting to resist. As the monkey watched, it said, “ Oh! Swimming is fun, it’s enjoyable and it’s easy. I also can do that even without any practice.” The monkey then jumped into the river. It tried very hard to swim and keep itself afloat. Unfortunately, it did not have the skill and drowned.

Which character would you rather be? You are the one to decide.

Good luck.