The stock market can always be looked at as a kind ofkingdomwhere the bulls and bears are the so-called kings. Though we have all heard of the bulls, the bears,(and even the wolves and kangaroos) of the stock market,here are some more animals that represent human behavior in the stock market:
Chickens (the one who chickens out): A chicken is a stock market investor who chickens out when they see that their stocks are in the ''red''. Chickens tend to invest at random points in the market's journey, makeimpulsive decisions on their investments, and often end up losing more than gaining. Since they get drawn to the stock market on the basis of tips after a big bull run, they live in constant fear of losses.
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Thus theypaniceven during the slightest of bear tendencies, even though the stock market can be quite volatile. A chicken's impulsive acts affect its investments and hamper the potential of the investments.
Rabbits (the quick traders):Rabbits are usually intraday traders who are looking for ways to make quick profits. Since they are always hunting for opportunities to make a quick buck,they take stock positions and close them off in a very short period of time. They tend to buy stocks and sell themoff within hoursthus not even holding them overnight.For eg: Say you buy some stocks at 12 pm and once the stock pricesrise by 5%, you sell it off at 2.30 pm.
Ostriches (the biased one): There are some investors who have a confirmation bias (ie who interpret new evidence as confirmation of their own beliefs)and who keep seeking information that supports their own beliefs. When the incidents do not add up to their beliefs or when they are faced with danger, theyburytheir head in the sand, just like an ostrich. Investors like these often end up ignoring market realities.
Sharks (the dangerous ones):Sharks are dangerous for stock market investors because they lure retail investors to buy obscure stocks with the temptation of high returns in exchange. They trade among themselves tomanipulate stock prices and when the stock prices soar and retail investors jump in, they dump the stocks on retail investors and vanish. That's when the stocks crash.
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Pigs (the unsatisfied ones): When you call out someone a ''pig'', you usually mean thathe/she is either greedy or an emotional fool. Pigs are never satisfied with their returns and hence they ignore proven investment ideologies. For eg: pigs may always end up having huge losses or huge profitsbecause they experiment with the rules that they shouldn't be messing with.
Sheep: (the one who follows the herd mentality): Sheep investors are those who attach themselves to ''theirherd'' and blindly go with the flow. They are known to follow suggestions from investment advisers, SMS tips, tweets, and other financial gurus without checking if the investment suits them or not. They are usually the last to enter abull marketand the last to exit bear markets.
So which stock market creature are you?
