Stock Market Forums have a terminology of their own and many new investors usually get confused over the language used within the trading. The stock market terminology popularly includes bulls, bears, pigs and chicken and it is up to an individual investor to decide on the strategy that he wishes to undertake. Bull Market A bull market is an optimistic market that hopes that prices of stocks will rise in future. This is generally based on economic conditions such as accelerating economic growth, low levels of inflation and unemployment coupled with BOP surplus. An investor that believes that prices will rise in the future and therefore buys stock now in order to sell at a later date is stated to be a “bull”. This is likely to result in profits if the prices actually rise while could result in a loss if prices fall. Bulls usually undertake an in depth analysis of the market before pursuing a strategy and therefore are likely to reap profits in the long term. Bear Market stock market forums may depict a falling price trend whereby investors might predict the prices to fall further in the foreseeable future. This type of market is known as a bearish market. These predictions are once again based on economic conditions such as rising unemployment, accelerating inflation and negative growth rates. Any investor that believes that the stock price will fall in the future is likely to sell Penny Stock Picks now with the expectation of buying shares when prices are low. This approach is likely to result in a profit if prices actually fall while could result in a loss if prices increase. Such an investor is known as a bear and bears usually tend to adopt a pessimistic stance regarding the price trends within the market. Chicken An investor that adopts a risk adverse stance is known as a chicken. The basic investment strategy of such an investor is to invest in marketable securities that are highly liquid and provide a fixed rate of return such as bonds. Such investors also refrain from investing in risk neutral investments and tend to stick with a consistent policy irrespective of current trends within stock market forums. Pigs The opposite of chicken, pigs usually tend to take a risk taker approach. However, their investment strategy does not take into account current market trends or financial information of the company and therefore they are unable to make gains within the stock market forums. Pigs therefore tend to invest in Penny Stocks that are of low quality and therefore are loss makers. Appropriate Strategy Investors can therefore adopt various strategies when operating within the various best penny stock newsletter. However, before choosing the strategy an investor must ascertain the level of risk that he is willing to take. Furthermore, investors must complete analyze the company’s financial position before purchasing its stock. An analysis of at least five years must be made in order to completely understand the key trends within the company’s earnings per share and price earnings ratio.