bears, bulls, corrections

[danny L]

Hi guys, first post. Enjoying reading all the posts on the boards but a bit confused by some of the terminology in the speculation board. Since I can't post there I thought I'd ask here.

What's a bear? is it someone who buys when the price goes up?

Whats a bull? Is it someone who buys when the price goes down?

What's a beartrap?

What are the corrections people keep speaking of? is there some automatic correction in btc price by mt gox or are they speaking of the market correcting itself? If the market corrects itself how does it do that?

how do people make money exchanging bitcoins?

As you can see my economic understanding is pretty basic.

I love the idea of  bitcoin - a decentralised, ownerless, p2p currency is radical. Let's see what happens. I read about bitcoin before deciding to buy some which I plan to give to my daughter. She's 4 now. I'm aware that the bitcoin thing could completely crash and burn and become worthless, or it could be something else. its a long term gamble. Saying that since I bought mine they have risen 10 dollars apeice

Danny

[lucif]

Bear - who sells higher and buys lower
Bull - who buys lower and sells higher
Trader - Person continously making money with plan becoming bull then bear
Pig - Person chaotically buying and selling due emotions without plan. Being continously slaughtered.
Bull trap - trap for pigs who think they are bulls with starting uptrend (pig buys) and then hard reversal (pig slaughtered).
Bear trap - same in other direction. Starting downtrend with immediate bullish reversal.

[lucif]

Very nice recent bear trap

[romantic1]

I think that's correction ! Now !

[akspecs]

As someone who frequently watches markets of all sorts let me try to describe a correction in simple terms.

A correction is what results after a massive rally (frequently unprecedented).  If the price rises quickly, it is only natural for people who benefited from this price to take profits (sell their positions).  This results in a correction, where a noticeable decline in price occurs.

When people are talking about a correction in bitcoin, they believe that bitcoins are over extended in the upward direction and need to fall in price in order to be correctly valued.