Are you a stock market investor?
Okay, a task for you.
Quickly recall the names of any 3 animals in the stock market.
Stuck at two?
Happens. Yes. with the most of us.
Even if you are a newbie trader with just rudimentary knowledge of financial markets, you have probably heard of bull and bear markets. These animal allusions, which are used to represent market behaviour, are common stock market lingo.
The use of animals in stock markets, however, does not stop there.
The stock market includes animals ranging from wolves to stags, all of which have meaning to express. So, let's try to decipher these zoological-sounding stock market words and figure out what they imply.
But before that, let’s have a quick recap on the terms you already know.
How did the terms ‘ bull’ and ‘ bear’ come into existence?
The words "bear" and "bull" are supposed to come from the different ways that each animal assaults its foes. A bull will raise his horns into the air, whereas a bear will sweep down. These activities were then figuratively linked to market movement. A bull market was defined as one in which the tendency was upward. It was a bear market if the market trend was downward.
Now, let’s start discussing the terms we are actually here for.
In the financial market, the wolf is often considered as the most powerful and opportunistic of all creatures. Wolves are generally individuals who are notoriously affiliated with stock market frauds and are known for using unethical methods to make money.
Jordan Belfort is possibly the most well-known of all stock market wolves, as featured in the film "The Wolf of Wall Street." Harshad Mehta, nicknamed the Wolf of Dalal Street, was a local hero.
When adversity strikes, an ostrich is known for burying its head in the ground. Investors that choose to overlook poor market circumstances are often compared to ostriches. These investors pay zero attention to their investment portfolio in the hopes that when the market stabilizes, it will be unaffected.
This stock market animal is infamous for disregarding all kinds of bad news and warning indications that their assets are in trouble. They believe that if they stay uneducated about their investment portfolio's performance, they will be able to weather the storm.
The traders known as "rabbits" acquire stocks and hold them for a very brief length of time. They are typically intraday traders seeking an immediate profit. Rabbits may not even hold a stock overnight, and they are constantly on the lookout for fast bucks during the day.
Investors who adhere to a single investing strategy and do not alter it in response to market conditions are referred to as sheep.
Typically, they are the last to join an uptrend and the last to exit a downtrend. The sheep choose to align themselves with the herd and adhere to a guru. They have no desire to create their own investment or trading strategy.
The adjective associated with the pig in the financial markets is the same as that of pigs in tales, particularly greed. This stock market beast is someone who abandons sensible investment practices and falls prey to greed. The pig wishes to keep reinvesting if a security produces a high return, even if it means lending funds on leverage or mortgaging assets.
As a result, he makes hazardous investing decisions that might lead to massive gains or losses. The pig ignores indications to reduce losses and loses sight of the clever investment plan created at the time of investing, making it a hazardous and reckless animal in the stock market.
Stag investors are traders that buy fresh stock offerings and sell them quickly to profit. In general, stags bet that fresh stock values will rise over hours or days. Traditional stag speculators are optimistic rather than pessimistic and prepared to take on a significant amount of risk. They are short-term traders who acquire stocks in order to profit quickly rather than as long-term investors.
The word "turtle" refers to investors that choose to hold their investments for a longer length of time. They execute the fewest deals and are unconcerned with short-term market price swings.
Consider the case where you purchased a stake in an IT business that is seeing long-term growth. The stock dropped the day after you acquired it. For a while, it was in a negative trend, but you believed in the company's future and stayed invested for a longer period of time. A turtle investor approaches the stock market in this manner.
It's a lot of fun to correlate animal attributes with various financial strategies. Each animal symbol used in trading has its unique meaning. Some of these applications serve as a strategy, while others serve as a warning. To get the most out of your investment, it's a good idea to learn about the complexities of stock markets before you start investing.