We have all at some point observed animal behaviours and compared ourselves to them.
Like if someone is fainthearted or timid and fearful, we use the phrase, She Or He is such a chicken-hearted person.”
Similarly, different animal behaviours have been linked to the trading style of investors.
Which Of These 11 Animal Represent Your Trading Style
While there can be many comparisons, these 11 animals are mostly used to depict the trading behavior of inventors in the stock market.
Bulls are strong and optimistic animals. You must have often seen festivals around the world celebrating raging bulls.
Similarly, bullish investors always have a positive outlook about the market and invest more money.
They believe that the economy will remain stable and consumption will increase with an increase in demand.
Hence, their trading style roots for an upward moving market.
Unlike the bulls, a bearish investor always keeps a pessimistic outlook of the market.
Similar to a bear that feels the winter days are gloomy, so he stores food and goes into hibernation, bearish investors tend to liquidate their positions before the market goes into a crash.
They believe that upward stock market trends are temporary, the economy will see a downward trend in the long run and their wealth will be eroded.
Pigs are greedy animals.
They tend to take up huge pain even for petty benefits.
Hence, a pig investor has an impatient trading style.
Usually, such investors will go to any lengths to get a position even for marginal profits.
As a result, they ride on huge risks and eventually lose more in the long run.
Chicken is associated with a faint or timid-hearted person.
In the stock market, chicken investors are the ones who are first drawn to random investment tips from friends and family.
But, they fail to have the patience to maintain their investment positions. They panic even on a slight downside in the markets.
Eventually, they end up losing more money than they gain.
Well, the next two trading styles are very interesting because of the famous rabbit and tortoise story.
As per the story, the rabbit rushes to cover most of the race and then impulsively takes a long break.
Due to this, he ends up losing. Similarly, rabbit investors are quick and impulsive. They hold their positions for short spans usually, intraday or a few weeks.
They aim to make quick money but, it takes too much luck to achieve success with such an impulsive investment style.
On the other side of the story, the tortoise remains slow but steady on his track and eventually wins the race.
Similarly, tortoise investors look to stay invested for long tenures so that they can earn compounded returns.
Established stocks provide lucrative dividends and bonus issues that help grow the wealth. They hold their positions even in a negative stock market and always gain in the long run.
Similar to the size of a whale, these investors are larger than life figures in the stock market.
They have large pockets that can drive the market trends and impact all the investors.
Hence, even small investors keep a track of their actions to predict the market movements.
Shark investors focus on their profits. Hence, they get into multiple trades every day, make money and exit their positions.
Their trading style avoids working on in-depth technical knowledge.
Sheep always move on herd mentality. Similarly, sheep investors follow the advice of their friends, relatives, or TV experts blindly.
Instead of analyzing the stock market, they react to the trends.
Wolf investors are unethical traders who employ wrong means to earn money.
They either skyrocket the prices of penny stocks or pressure the market price of a stock by excessive short-selling.
Ostrich investors are stubborn and believe that they are always correct. They turn a blind eye to information that doesn’t support their trading style.
Hence, they suffer heavy losses.
Whichever animal style you resonate with, you should invest based on your preferences.
Imitating other investors is not a good investing style. Rather you should recognize your requirements and choose to invest accordingly.
This simple practice can make stock market investment easy for you.