Most Frequently Used Trading Animals in the Share Market

Animals in the Stock Market are commonly used terminology to define specific characteristics of the type of traders or investors or market scenario.

Have you heard/watched the movie ‘The Wolf of Wall Street” starring Leonardo DiCaprio as Jordan Belfort? If yes, then have you wondered why he has been referred to a wolf in the movie? What’s an animal doing in the stock market-based movie?

We are going to discuss most commonly used animals in the stock market.

1.Bulls

The bulls represent the investors or traders who are optimistic about the future prospects of the share market. They believe that the market will continue its upward trend. Bulls are the ones who drive the share price of a company higher.

2.Bears

Bears are the investors or traders who are totally opposite of the bulls. They are convinced that the market is headed for a fall. Bears are pessimistic about the future aspects of the share market and believe that the market is going to be in RED.

The bulls and bears are often used to describe the market condition. A bull market is a scenario when the market appears to be optimistic and climbing new highs. On the other hand, a bear market describes a market where the things are not good and appears to be a long-term decline.

3.Rabbits

The term rabbits are used to describe those traders or investors who take a position for a very short period of time. The trading time of these traders is typically in minutes.

These types of traders are scalpers and trying to scalp profits during the day. They do not want overnight (or long-term) risk and just looking for an opportunity to make some quick bucks for the market during the day.

4.Turtle

The turtles are those typically those investors who are slow to buy, slow to sell, and trades for the long-term time frame. They look at the long-term frame and try to make the least possible number of traders. This kind of investors does not care about the short-term fluctuations and most concerned with long-term returns.

5. Pigs

“Bulls make money, bears make money, pigs get slaughtered”

These investors or traders are impatient, willing to take high risk, greedy and emotional. The Pigs don’t do any kind of analysis and always look out for hot tips and want to make some quick bucks from the share market. Pigs are biggest losers in the stock market.

6. Ostrich

Ostrich are those kinds of investors who bury their heads in the sand during bad markets hoping that their portfolio won’t get severely affected.

These kinds of investors ignore negative news with an expectation that they will eventually go away and will not impact their investments. Ostrich investors believe that if they do not know how their portfolio is doing, it might somehow survive and come out alright.

7. Chicken

Chicken refers to those investors who are fearful of the stock market and hence do not take risks. They stay away from the market risks by sticking to conservative instruments such as bonds, bank deposits or government securities.

8. Sheep

Sheep are those kinds of investors who stick to one investing style and do not change according to the market conditions.

They are usually the last ones to enter an uptrend and the last one to get out of a downtrend. The sheep like to be on the side of the majority (herd) and follow a guru. They are not interested to develop their own investing/trading method.

9. Dogs

Dogs are those stocks which have been beaten down by the market due to their poor performance. Many financial analysts look into the dog stocks closely as they expect these stocks to recover in upcoming days.

10. Stags

This kind of investors or traders is not interested in bull or bear market. They just look out for the opportunities.

Stags are generally the traders who buy the share of a company during its initial public offering (IPO) and sell them when the stock is listed and trading commences. They do stagging with a hope to get listing gains and hence these individuals are called stags.

11. Wolves

Wolves are the powerful investors/traders who use unethical means to make money from the share market. Mostly, these wolves are involved behind the scams that move the share market when it comes to light.

For example- Harshad Mehta can be considered as the wolf of Dalal Street. He was charged with numerous financial crimes that took place in the Securities Scam of 1992.

Similarly, the famous Hollywood movie ‘The Wolf of Wall Street’  depicted Jordan Belfort, who was convicted on charges of stock fraud in his penny stock operation and stock market manipulation.