The story that the father told his son about the bulls and the bears.

Dylan! If you had a choice to be either a Bull or a Bear, what animal would you choose?

“I don’t know. What should I be?”  says Dylan

Well, Dylan that depends on the situation the market is in. You could be a bull or ride the bull, by buying a stock or going long a stock by anticipating the stock to go up in value.  A bull usually has the tendency to take the offense position by using its ivory horns in an upward momentum to fight against anything that is getting in its way to get to the top. In fact, the majority of investors like to ride the bull, or be called bulls, because that’s the way society in America natured most of them to think and invest.

What does the bull fight against when it’s trying to go up? Dylan says.

It fights against the bear. The bear is the opponent in the battle. The bear takes the defense position by attacking the bull with its sharp claws. In order for the bear to win the battle, it must attack with its claws in a strong downward momentum. Most investors don’t like being a bear or piggybacking on a bear, unless they are using a dollar cost averaging strategy, which will be later explained. Traders on the other hand, like being a bear, because they can profit when price go down, by shorting or selling borrowed stock.

So, when the stock is trending down, the bear is winning? Dylan is asking

Yes, the bear is in control.

“Could I be both?” says Dylan

Yes, you can Dylan, but you need to know when and how to be with the bear or with the bull.  

If you’re thinking about riding the bull, you must have good reasons for getting on. Once you’re on the bull, hold on tight as its jumps up and down very rough. In the financial markets, this up and down momentum is called volatility. Volatility can cause you to have headaches, and nausea if you don’t have a plan and have experience it for the very first time.  ……….  The key to riding the bull or piggybacking on a bear is successfully is positioning your mind, body and emotions strongly and properly.

Knowing how to get off the bull before he throws you off is important to your survival as an investor/trader. You either voluntarily jump from the bull (when you see it getting tired of going up) and land on your feet without any injuries to yourself (account) or you let the bull throw you violently from his back and onto the ground with major injuries to your body and psychological being (account).

Now, with the bear, if you’re thinking of piggybacking with the bear, you must be aware of how violently it could get once it starts striking down with its sharp claws on anything that gets in its way. If you piggyback properly on the bear, you can see how investors and trader become so fearful for their lives(investments), which in case, you will stand to profit if you’re still in tune with the bear at the right time, and at the right circumstances, however.

After experiencing enough bull rides, or bear piggybacks, you’re going to find out that it’s better to be on the right side, even if it means, not riding the bull or experiencing a piggyback with the bear, but doing absolutely nothing, until the trade comes you’re way. If you have the characteristics of being a patient person, then you’ll find out how much you can save by cutting your losses, or gaining once you let the market come to you.

If you want to trade the stock market every day, then you want to be on the right side of the trade.

How? How ? How????? Dylan says

That’s the best question, yet most difficult question to answer.

From my experience as a trader in disguise and from the stories that I have heard from all traders, novices or professionals, I have found that one must accept that nobody can ever guaranteed a 100% probability for a trade to move in one direction. If the probability is 99% moving up, it still has a 1% probability of moving down, however. A professional trader will trade in the favor that has the best probability of going in one direction, yet will be flexible in case in doesn’t trade in that direction. Therefore, the only way, a trader will be on the right side of the trade, will be understood after understanding the following cycles of Ignorance. For example, during my research and experience, as trader, I now know, what I didn’t know, what I should have known, when I didn’t know, why I didn’t know. How I didn’t know, what I now know will always be the mystery within our search for the Holy Grail as a trader, however.