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Lexicon

Lexicon

Investing & Trading

There is no clear-cut difference between both terms. If you put both terms next to each other, investing usually refers to longer-term investing, whereas trading refers to a form of active investing where the investor holds positions for short amounts of time, from a couple of hours to a couple of days. (Long-term) investors hold positions from several months to several years. 

Bull market & Bear market

Bull and bear market refer to a general tendency in market movements. If a market is going up, we refer to it as a bull market. If a market is going down, we refer to it as a bear market. Think of it as how both animals attack their preys: The bull will shift up his head from low to high, hence the market is going up. The bear will attack by pounding down his claws, hence the market is going down.  ​

Advanced Concepts
Market performance & Economic Cycles
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