The Different Animals of the Stock Market

If you are a regular trader in the stock market then chances are you’ve heard some things being compared to animals. The two most famous are the bulls and the bears which are in a constant struggle. However, there are more animals that are abound in the stock market and even in the financial industry. If you don’t know them yet then read on and know more about these animals that dominate the market.

Bull

If you know where wall street is then you might have chanced upon the financial market’s unofficial mascot: the Charging Bull. Otherwise known as the Wall Street Bull or the Bowling Green Bull, this bronze sculpture has long stood witness to the rise and fall of the market since 1989. It stands as a symbol of aggressive optimism and prosperity as it takes on the stance of a bull ready to charge. Today, it stands as a symbol of good expectation. An investor who takes the bull approach will buy securities with the anticipation that the price will rise in time for them to sell it. Generally, in a bull market, everything is in good shape meaning GDP is growing, stocks are rising, employments are abound, and the economy is in an uptrend.

Bear

The polar opposite of the bull is the bear. Naturally, GDP is shrinking, stocks are falling, many are jobless, and the economy is tracking a downtrend to the point of recession. In times of a bearish market, investors are preparing for the worse. To still profit despite this harsh times, investors turn to short selling while others wait it out until the market is in an uptrend again. Traders that expect stock prices to drop have a bearish outlook.

Pig

A lesser known animal in the financial industry is the pig. If the bull is optimistic while the bear is pessimistic then the pig simply doesn’t care. A trader that takes on high-risk trades to earn big amounts of money in a short span of time is a pig. Not to be condescending or anything but this risk takers are abound in the stockmarket. Pigs can be described as those traders that lets their emotion and greed do the trading. They often lose, obviously. Experienced traders benefit a lot from pigs as their loss usually becomes the professional traders gain.

Chicken

Meanwhile, if there are overconfident and risky traders, there are also overly shy and safe traders that are too afraid of loss to the point that they don’t trade at all. You might be aware of calling someone a chicken if they’re not brave. Well, it’s kind of the same thing the trading industry. Usually, a trader that is considered as a chicken will only trade if they’re quite sure of profit which is rare in the ever fickle stock market. So in the end, they get no returns because they risk nothing.

The animals of the stock market are simply the traders. You have the choice to be any one of them or even a mix of these animals. Incorporating your own style and strategy is a great way to find yourself as your own animal in the stock market.