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There are more animals than bulls and bears in investing. What are they?

There are more animals than bulls and bears in investing. What are they?

Jan 25, 2021
3 mins | Views 19629

Our world has been home to all kinds of plants, animals, and of course, us, for a long time. It comes as no surprise that after centuries of such happy (and at times tumultuous) coexistence, some characteristics of each species have rubbed off onto each other. It is said that pets often begin looking like or behaving like their human owners. But have you ever seen human beings behaving like their animal counterparts? In the forests of Finance, they do.

You have no doubt heard the terms “bulls” and “bears” in relation to the stock market.

  • Bulls: One of the two biggest ‘gangs’ of the stock market jungle. “Bulls” refer to investors who are optimistic, strong, and charge towards profits and glory with confidence. A bullish market is the best kind of market you could ask for. It signifies a rising, progressive market that will help its investors create more wealth and strengthen the economy.

  • Bears: The “Bears” are the exact opposites of the bulls. Pessimistic and negative in their approach, bears are always worried about losing money. A bearish market is just like a bear in hibernation –a lazy, heavy burden that creates little or no money.

But did you know there are many more such animals hiding? Let’s introduce you to a few.

The Fast and the Furious:

This category of investors relies on speed, strength, and aggressiveness to cash in on the most profits in the littlest time possible. They are the risk-takers, the fighters. While their tactics earn them a quick buck, they do lose out on their money in the long run.

  • Rabbits: Quick and nimble, rabbits are the traders who trade on the stock market for very short periods. They want to make a quick buck before moving onto the next profitable stock. Their trading sessions last for mere minutes, and more often than not, they come out winners in the financial race. Not to mention, brokers love them for all the transaction fees they pay.

  • Stags: Stags are a class apart. They prefer not taking sides – they are neither bullish, nor bearish. Their modus operandi is simple; they buy stocks of new issues or IPOs and sell them off for a profit as soon as the stocks start trading in the open market. They are good at sensing opportunities and strike while other traders are still trying to decide whether they want to buy a stock or not.

  • Pigs: Just like the pigs in the animal kingdom who are greedy for more food, these investors are the ones who cannot get enough of a good return. Forever hungry for more, they gobble up the top stock tips, make a decent profit, and then grunt for more, bringing about their downfall. Victims of their own greed, they often end up on the financial menu of big and powerful investors.

The Slow and the Skeptical:

This category of investors hates risks. “Safety and security” is their mantra, and they stand by it steadfastly. They aim to survive (and if possible, thrive) in a ruthless economy with the least possible harm to their current position and possessions.

  • Tortoises: As in the story about the rabbit and the tortoise, the tortoise is slow and steady in his approach. He takes carefully analyzed, level-headed decisions and is in no hurry to buy/sell his precious stock. Tortoises are long term investors who take their own sweet time to let their money grow rather than chase quick, hasty returns.

  • Chickens: Chickens are, well, chickens. Scared and under-confident, these investors are never sure of what to do. They dislike taking risks of any kind and hence, do not make as much money as they probably can. They invest in conventional schemes such as fixed deposits, bonds, and government securities that are reliable and secure.

  • Ostriches: An ostrich is known to bury his head in the ground at the hint of approaching danger. Some investors tend to shut their ears and pay no heed to any negative information regarding the stocks they trade. They refuse to believe that a bad market will affect their portfolio. By simply ignoring such ominous messages, they hope to survive (sometimes even profit) despite the falling numbers of the stock price.

  • Sheep: Sheep always live-in herds. Similarly, a sheep investor is the one who always follows the herd when it comes to financial decisions. Such investors usually have a “guru” whom they follow, without taking the effort of thinking for themselves. For them, safety lies in big numbers. They think that if more people are taking interest in a particular stock, it must be good.

The Game Changers:

These are the ones who are truly a class apart. Little bumps and fluctuations in the stock market do not scare these two giants. Indeed, they themselves hold the power to make or break any market and turn entire economies topsy-turvy.

  • Whales: Whales are the largest creatures in the world and the most powerful in the stock market. The entire stock market is vulnerable to a whale’s whims and can rise or fall sharply if a whale investor buys/sells his/her stock. Following such powerful whales can sometimes bring big gains to newbie investors.

  • Wolves: Sly and shrewd, wolves are those investors who have only one aim in mind – to make a good hefty profit, no matter what the cost. Wolves are risk-takers and often take unethical steps to ensure they earn huge returns.

Each category has its own strengths and weaknesses. To label any of them as ideal or unsuitable would be incorrect. Each of these investor kinds is susceptible to stock market volatility – sometimes they win, sometimes they lose. The trick lies in changing your stance as per the circumstances. Be alert, be flexible, and don’t get disheartened by losses or over-confident by gains. With all these animal instincts inside you, it would be wise to remember that after all, you are only human.

Inspired from: https://economictimes.indiatimes.com/wealth/invest/animal-instincts-that-stock-market-investors-have/which-investing-creature-are-you/slideshow/79796999.cms


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