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What type of Trading Animal are you?

Written by Nik Rainer | 5 minutes
FRI 11-10-2019
World Animal Day (October the 4th) aims to raise the status of animals to improve their welfare. So, with that in mind lets have a look at the association between animals and the stock market. Outlooks can be Dovish or Hawkish and stocks and markets can have a dead cat bounce. Traders and strategies can also likened to animals because of their traits and tendencies. Here's our twelve stock market animals.

Bear (falling prices/market)
The bear is - together with the bull - undoubtedly the most famous and most mentioned stock market animal. The bearish trader believes that markets are going to fall and often takes a short position. A substantial decrease is usually expected that can also last for a longer period.

Shark (quick turnaround)
This is a tough investor who wants to earn money quickly. He scans for chances of winning, gets in quickly and when the time comes will soon be out again. An opportunist who is always looking for new deals.

Dog (under performer)
The dog is a share that you don't want. A real under performer. In the famous movie "Wall Street" it's ramped up to "a dog with fleas". Other investors, however, see an investment in a dog as an opportunity.

Rabbit (out for quick wins)
The rabbit looks a bit like the shark, but this investor acts even faster. Sometimes executes a lucrative transaction within minutes or even seconds. No positions overnight, but every day: its  new round of new opportunities.

Chicken (stays away from risk)
The chicken is much more careful and does not dare to act too quickly. Often too scared to lose money and stays on the sidelines for a long time, missing out on opportunities.

Sheep (no focus or strategy)
A sheep is also careful, but above all it does not have its own plan or strategy. Often following others, not realizing what is really happening. And sometimes misses large movements up or down.

Turtle (wait quietly for returns)
It will not surprise you that the turtle is a slow investor. They trade quietly and also sell very quietly. Looks at the long term and does not get excited by the daily movements on the stock market. 

Bull (rising prices)
The bull is the opposite of the bear. Very optimistic and expect higher rates during the day and also afterwards, trading accordingly.

Ostrich (denies loss / risk)
The ostrich is someone who tends to put his head in the sand. For example, ignores bad news about a company  they have invested in and simply hoping that things will turn out well.

Pig (takes a lot of risk)
The pig does a lot of trading and taking a lot of risk. Greedy and does everything big. Unfortunatley they often doesn know when enough is enough and when to take a profit (or loss) .

Whale (can move markets)
The whale is a powerful player that can move prices and markets, but does so cautiously so ordinary investors don't notice. Many investors are on the look out for the whale so they can hitch a ride.

Wolf (profiteer)
We've all heard of the "Wolf of Wall Street". It is not surprising that the wolf is the opposite the sheep. This regularly manipulative trader wants to win at the expense of others. The wold is s at its best when there's lots of tension in the market and often knows how to profit from the loss of others.

Author

Nik Rainer

Nik joined BinckBank in 2016 as part of the team responsible for rolling out the Saxo Bank international service. Nik has held positions at various banking institutions such as Hambros Merchant Bank, Standard Chartered Bank and Morgan Stanley and brings his solid financial background to the role. Working with the development of new client services and relationship management, Nik also contributes to local publications and forums.

The information in this article should not be interpreted as individual investment advice.  Although BinckBank compiles and maintains these pages from reliable sources, BinckBank cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk.  We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks. 

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