Different animals are also mentioned in the stock market for market conditions and investors.
If you are interested in share market, then you must have heard about bull and bear. But do you know that many other animals are also included in the terminology of the market. That is, these animals are also mentioned in the business of the market.
Not Only Bull And Bear, These Animals Are Also Mentioned In The Share Market
Such as The Bull, The Bear, The Rabbit, The Turtle, The Pig, The Ostrich, The Chicken, The Sheep, The Dog, The Stag, The Wolf, The Lame Duck, The Whale, The Shark, Dead Cat bounce, Dogs of the Dow etc. Let us understand in simple language why this is done.
Bull (The Confident One)
The stock market’s most prominent and positive animal is the bull. A bullish market indicates that stock prices are rising and investors are investing more money in the market. When investors are bullish, they have high hopes for the market and this boosts stock prices. At times, this trend could last for years.
For instance, the Indian market was viewed as being bullish from December 2011 to March 2015. During this time, the Sensex grew by more than 98 percent.
Bear (The Depressed One)
The opposite of a bull market is a bear market. During a bearish period, investors have a pessimistic and negative outlook on the market and make fewer investments. Typically, the market is supposed to be negative when there is a destruction of around 20%. This may last for several months. This time frame could also occur when a nation is experiencing economic turmoil that leads to job losses and lower investments.
The most well-known example of a bear market is the Great Depression. Another instance of a bearish run is the housing crisis that occurred in 2007.
Pig (The Greedy One)
Pigs are investors who take on excessive risk or ignore risk entirely in order to maximise short-term profit. They make rash investment decisions or purchase stocks without doing adequate or any research. As a result, pigs lose money, potentially a lot of it – hence the adage that they are “slaughtered.”
Bulls and bears have opposing investing styles, but both can make money in the long run if they invest according to their stated investment goals and strategy. Pigs, on the other hand, avoid the buy-and-hold strategy and approach investing in an inconsistent manner.
The phrase “Bulls make money, bears make money, pigs get slaughtered” is also the title of Anthony M. Gallea’s 2002 book, which contains general investing tips and advice.
Rabbit (The Faster Traders)
Rabbits are typically intraday traders looking for quick profits. They take stock positions and close them off in a very short period of time because they are always looking for opportunities to make a quick buck. They typically buy stocks and sell them within hours, never holding them overnight. Assume you buy some stocks at 12 p.m. and sell them at 2.30 p.m. if the stock price rises by 5%.
Ostriches (The Unhappy One)
Some investors have a confirmation bias, which means they interpret new evidence as confirmation of their own beliefs and continue to seek information that supports those beliefs. When the evidence does not support their beliefs, or when they face danger, they bury their heads in the sand like an ostrich. These types of investors frequently ignore market realities.
Chickens (The Afraid One)
Chicken investors are those who are afraid of the stock market and thus do not take risks. They avoid market risks by investing in conservative instruments such as bonds, bank deposits, and government securities.
Turtles (The Slow One)
Turtles are typically long-term investors who are slow to buy, sell, and trade. They look at the long term and try to make as few trades as possible. This type of investor is unconcerned about short-term fluctuations and is more concerned with long-term returns.
Sheep (Those Who Adhere to the Herd Mentality)
Sheep investors are those who attach themselves to “their herd” and follow the herd blindly. They are known to blindly follow investment advice, SMS tips, tweets, and other financial gurus without first determining whether the investment is suitable for them. They are typically among the last to enter a bull market and the last to exit a bear market.
Sharks (The Savage One)
Sharks are dangerous to stock market investors because they entice retail investors to buy obscure stocks in exchange for high returns. They trade amongst themselves to manipulate stock prices, and when stock prices rise and retail investors rush in, they dump the stocks on retail investors and disappear. That is when the stock market crashes.