Animal Symbols in Stock Market

There are many fascinating and interesting facts about the stock market. There are many interesting facts about trading stocks, including the types of securities that can be traded and the strategies you can use to trade them. It is important to be familiar with the terminology and jargons used in the share market. You may be familiar with the terms bulls' or bears'. Did you know that the stock market is made up of a whole animal kingdom, not just bulls and bears. Every animal represents a particular aspect of the market. Let's now try to understand these animal-based slangs and decode the zoologically-sounding phrases used in share market.

1. The Bull

Bull is the first and most well-known stock market animal. Bulls are the most optimistic of all share market animals. The bull is a positive and favorable stock market animal. Bull markets are when stock prices rise and investors invest more. Traders are optimistic about the future prospects of the companies they have invested in and believe that the market will continue to move upward. Companies' share prices rise because of bulls. A bull market may last for many years.

2. The Bear

Another popular symbol of stock market animals is the bear. Negative investor sentiment is the bear, which is the exact opposite of the bull. Investors in a bear market are more pessimistic, cynical and less interested in investing. A bear market typically sees a drop in interest in investing of approximately 15% to 20%. This is also when a country might be experiencing an economic downturn, or a recession. People might lose their jobs or be unable to invest in the markets due to unemployment. A bear market lasts typically for a few days or even a few months.

3. The Pig

Stock market pigs have the same connotation as children would associate with pigs from childhood stories. Pigs are often associated with greed. The share market animal, pigs, is known for its greed. Returns are not enough for a pig. A security that earns high returns will be reinvested by the pig. This may include borrowing money on margin and mortgaging assets. A pig can be a risk-taker and make huge investment mistakes that could lead to huge losses or large gains. The pig loses sight and disregards cues to reduce losses. This makes it an irresponsible and dangerous animal in the sharemarket.

4. The Ostrich

The connotation associated the ostrich with the pig is exactly what you think. As we all know, the ostrich is known for its ability to hide in the sand during tough times. Investors who ignore adverse market conditions are often compared to ostriches. Investors who ignore market conditions are likened to ostriches. They do this in the hope that their portfolio will not be affected by changes in the market. These stock market animals are known for their inability to ignore negative news and signs about their investments. They believe that the negative market conditions will disappear organically and not have an impact on their investments. These investors believe that they can survive volatility if they are not informed about their investments' performance.

5. The Chicken

Perhaps you've heard the expression "to chickens out".To chicken out of something is to fear it. Investors who live in fear of the stock market are referred to as the 'chicken'. Investors who panic when the market turns negative start to make impulsive decisions, such as exiting stocks prematurely. These investors forget volatility is part of the market and make decisions based on their emotions. Investors who are chickens in the stock exchange prefer conservative, non-risky investments like bonds, bank fixed deposits, and government securities.

6. The Sheep

Investors in sheep are those who don't invest with any particular strategies in mind. They are similar to sheep investors in that they have a herd mentality, and rely on the advice of others. The sheep investor will stick to a single style of investing and not change it over time, regardless of market conditions. They are the first to enter a stock during an uptrend, and the last to exit it when it is in a downtrend. Sheep lack the confidence to create their investment strategies. Stock market animals like sheep to follow the herd mentality and be on the sidelines.

7. The Wolf

The stock market's most powerful and untrustworthy animal is the wolf. Wolf investors are often known for using unethical methods to make money. Jordan Belfort, one of the most notorious stock market wolves, is featured in "The Wolf of Wall Street". His investment journey is illustrated by this book. We also have the Harshad Method, better known as The Wolf of Dalal Street.

Last note:It's quite entertaining to link the animal characteristics with different investment styles. Each animal on the stock market has its own investment style. Some begin as chickens or sheep and then become bulls. A bull nearing retirement might become a chicken, or stick with debt investments. You can choose the type of share market animal that you want to be. Have fun investing!