A zoo in the world of investment

Many people wonder how wolves, rabbits, bears are connected with the serious world of investment. But the trend of changing roles is firmly entrenched in both the stock and crypto markets, indicating behavioral strategies. A more detailed guide to the animal world is further.

Bulls and bears

The most popular representatives that even beginners have heard about. The behavior of the investor is similar to its prototype-an animal. So the Bear hits its prey, knocking it to the ground with a blow. Bears in the market are working on a decline, flooding it. There is even a term “bear market” when the price of assets falls by more than 20%. The bulls, in turn, lift up the victim on the horns, throwing it up. This is how the bull market behaves, intensively gaining value.

Turtles, rabbits

Such investors got their nicknames for the time spent on transactions. Rabbits make quick decisions, do not delay the time to enter the position, it can take only a few minutes. They promptly disrupt the daily profit on the stock exchange. While the participating Turtles are more measured. They are more prone to long-term deals.

Chickens, pigs

The position of “chickens” in the market is similar to hatching eggs. Such representatives of the stock market collect investment portfolios and stop there. Often, good profitable trades pass them by just because they don’t fit into their strategy. 

Pigs have earned their name by impatient behavior. They greedily buy up assets, being emotionally affected more than others. Practice shows that greed is not the best quality for an investor, which means pigs are not the most successful players.

Elephants

They deservedly carry their status of heaviness for the market. Elephants are big players, they own large volumes of securities and are able to turn the markets. Often their decisions can change the price of an asset. Their transactions are considered particularly large. They can use their power over the situation for their own purposes.

Ostriches

We are not used to getting involved in the negative mood of the market and analyzing it. Ostriches prefer to hide their heads in the sand when market indicators light up red. Their task is to wait out difficult times with minimal losses, and later return to the market. They do not disband their portfolios, but simply wait away.

Lame ducks

The term “Lame Ducks” first appeared in the 18th century on the London Stock Exchange, but has remained relevant to this day. This was the name of traders who had borrowed funds, but failed transactions. Participants were forced to declare default and leave the market. Such participants complete their work with heavy losses, sometimes with complete bankruptcy.

Wolves

The behavior of Wolves is characterized by special audacity and boldness in the market. Such participants have a lot of experience in stock trading, they are not crushed by the panic moods of the market, they are quite confident in themselves. Often wolf schemes are illegal, which also needs to be prepared for. They manifest themselves in manipulations, removing their own benefits. There are vivid examples of “wolves” who were subsequently responsible for their actions under the law.